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:

Marginal Product

The additional output that is produced as a result of using one more unit of a particular input, while keeping other inputs constant.

Marginal Product

The additional output resulting from the use of one more unit of a productive input, holding other inputs constant.

Production Function

An equation that describes the maximum output of a good achieved from a given number of inputs.

Input

The inputs such as labor, materials, or resources utilized in creating products and services.