The Annual Average Compound Rate of Return for Stocks from the Period

question 6

Multiple Choice

The annual average compound rate of return for stocks from the period 1926-2007 was:

• A)8.50%
• B)9.55%
• C)10.05%
• D)12%

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Definitions:

Hedge Accounting

Accounting techniques that modify the standard rules of accounting to recognize the offsetting effects on the financial statements of both the hedged item and the hedging instrument.

Mandatory

Required or obligatory; something that must be done or adhered to.

Optional

Referring to a choice or discretion available in a process or decision, where participation or selection is not mandatory.

Receivable

An amount of money owed to a business by its customers or clients for goods or services provided on credit.