The Geometric Average Annual Return on IBM from 1996 to 2005

question 2

Multiple Choice

The geometric average annual return on IBM from 1996 to 2005 is closest to:

• A) 12.5%
• B) 16.7%
• C) 13.2%
• D) 17.8%

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Definitions:

Cognitive Appraisal

The process by which an individual evaluates and interprets a situation or stimulus to determine its significance for his or her well-being.

Zajonc

A psychologist known for his work in social and cognitive processes and specifically for his theories on social facilitation and the mere exposure effect.

Lazarus

Refers to Richard Lazarus, a psychologist known for his theory on stress and emotion focusing on cognitive appraisal.

Emotional Reactions

Responses driven by one's feelings to certain stimuli or situations, involving physiological, behavioral, and cognitive aspects.