Use the Table for the Question(s) Below

question 52

Multiple Choice

Use the table for the question(s) below.
Consider the following realized annual returns:
-The geometric average annual return on the S&P 500 from 1996 to 2005 is closest to:

• A) 9.75%
• B) 8.75%
• C) 7.10%
• D) 8.35%

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Definitions:

National Income

National Income is the total income earned by the residents of a country, including wages, profits, rents, and taxes, minus subsidies, over a certain period of time, often used to assess the economic health of a country.

Wages

Compensation provided to workers for their efforts or tasks, usually determined based on hours worked, daily rates, or the amount of work completed.

Salaries

Fixed regular payments, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.

Fringes

Additional benefits provided to employees beyond their regular salaries, such as health insurance or retirement plans.