Use the Table for the Question(s)below

question 41

Multiple Choice

Use the table for the question(s) below.
Consider the following average annual returns:
-What is the excess return for the S&P 500?

• A)5.7%
• B)7.0%
• C)0%
• D)8.4%

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Definitions:

Fiscal Year Ends

The completion of a one-year, or 12-month, accounting period after which a company determines its financial performance.

Net Income

Total earnings of a business, arrived at by subtracting all expenses and taxes from its overall income.

Dividends

Payments made to shareholders out of a corporation's profits, reflecting the company's earnings and financial health.

Common Stock

A type of equity security that represents ownership in a company, with rights to vote and share in dividends.