The Historical Arithmetic Rate of Return on U

question 76

Multiple Choice

The historical arithmetic rate of return on U.S.small stocks over the 1926-2009 period has been _______.The standard deviation of small stocks' returns has been ________ than the standard deviation of large stocks' returns.

• A)12.43%, lower
• B)13.11%, lower
• C)16.24%, higher
• D)17.43%, higher
• E)21.53%,higher

---

Definitions:

Rational Commitment

A decision-making approach where choices are made based on logical evaluation and reason rather than emotion or social pressure.

Financial

Pertaining to money, investments, banking, or management of assets and liabilities.

Developmental

Pertaining to the process of growth and change over time, often focusing on emotional, physical, psychological, or intellectual expansion.

Salary.com

A website and tool that provides information on job salaries, benefits, and compensation-related data and advice.