What Was the Average Annual Rate of Return on Long-Term

question 49

Multiple Choice

What was the average annual rate of return on long-term corporate bonds during the period 1926 to 2011?

• A)8.3%
• B)6.5%
• C)6.2%
• D)7.00%

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Definitions:

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding production costs.

Gross Margin

Gross margin is a financial metric that measures the difference between revenue and the cost of goods sold (COGS), divided by revenue.