Shawn Earned an Average Return of 14

question 44

Essay

Shawn earned an average return of 14.6 percent on his investments over the past 20 years while the S&P 500,a measure of the overall market,only returned an average of 13.9 percent.Explain how this can occur if the stock market is efficient.

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, reflecting the core profitability of a company's operations.

Operating Expenses

Costs related to the normal day-to-day operations of a business, excluding the cost of goods sold.

Cost Of Goods Sold

The total cost directly associated with producing or acquiring the goods sold by a company during a specific period.