What Has Been the Average Annual Nominal Rate of Return

question 20

Multiple Choice

What has been the average annual nominal rate of return on a portfolio of U.S.common stocks over the past 114 years (from 1900 to 2014) ?

• A)Less than 2 percent
• B)Between 2 percent and 5 percent
• C)Between 5 percent and 11 percent
• D)Greater than 11 percent

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Definitions:

Cognitive Mechanisms

Mental processes that enable understanding, analysis, decision-making, and learning, influencing how individuals perceive and interact with the world.

Free Will

The concept that humans have the ability to make choices that are not predetermined by past events or natural laws.

Funder's First Law

The psychological principle stating that "Great strengths are usually great weaknesses, and surprisingly often the opposite is true as well," highlighting the complexity of personality traits.

Psychological Triad

Refers to the three components of psychological analysis: thoughts, feelings, and behaviors.