You Invested $5,000 Eight Years Ago

question 60

Multiple Choice

You invested $5,000 eight years ago.The arithmetic average return on your investment is 10.6 percent and the geometric average return is 10.23 percent.What is the value of your portfolio today?

• A) $9,092
• B) $10,623
• C) $10,899
• D) $10,947
• E) $11,195

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Definitions:

Infant

A very young child or baby, typically from birth to one year of age, who is in the earliest stages of development.

Mongolian Spot

A benign, blue-gray birthmark, often appearing on the skin of the lower back and buttocks of infants, more common in those of Asian or African descent.

African American

An ethnic group of Americans with total or partial ancestry from any of the black racial groups of Africa.

Benign

A term used to describe conditions, tumors, or growths that are not cancerous and are unlikely to be harmful.