A Portfolio Had an Original Value of $7,400 Seven Years

question 102

Multiple Choice

A portfolio had an original value of $7,400 seven years ago.The current value of the portfolio is $11,898.What is the average geometric return on this portfolio?

• A) 7.02 percent
• B) 7.47 percent
• C) 7.59 percent
• D) 7.67 percent
• E) 7.88 percent

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Definitions:

Wage Differentials

Wage differentials are the variations in wage rates due to the differences in occupation, industry, geographic location, or within a company, among other factors.

College Graduates

People who have finished their studies and earned a degree from a higher education institution.

Labor Supply Curve

The labor supply curve illustrates the relationship between the wage rate and the quantity of labor that workers are willing to offer at different wage rates.

Substitution Effect

The change in the consumption patterns of goods or services, as consumers replace pricier items with more affordable substitutes when prices change.