Over the Past Ten Years, Large-Company Stocks Have Returned an Average

question 41

Multiple Choice

Over the past ten years, large-company stocks have returned an average of 11.6 percent annually, long-term corporate bonds have earned 6.4 percent, and U. S. Treasury bills have returned 3.2 percent. How much additional risk premium would you have earned if you had invested in large-company stocks rather than long-term corporate bonds over those ten years?

• A) 1.7 percent
• B) 3.7 percent
• C) 5.2 percent
• D) 5.6 percent
• E) 8.1 percent

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Definitions:

Norming

is a stage in team development where members resolve their differences, appreciate colleagues' strengths, and establish norms and cohesiveness.

Performing

The fourth stage of group development, characterized by high levels of productivity, cohesion, and effective functioning towards achieving goals.

Adjourning

The final stage in Tuckman's group development model, where the team disbands after achieving its goals, also characterized by reflection on accomplishments and learned lessons.

Group Size

Refers to the number of individuals constituting a group, which can affect dynamics, interactions, and outcomes within the group.