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

---

Definitions:

In-Group

A social group to which a person psychologically identifies as being a member.

Currying Favor

The act of using flattery or strategic friendliness to gain favor or advantaged treatment from someone, especially in a professional or political context.

Future Favors

Acts or services performed with the expectation that they will be repaid in the future; often in the context of building reciprocal relationships.

Reciprocity Concept

A social norm suggesting that a favor or good deed should be returned in kind, fostering cooperation and positive relationships among individuals.