According to Historical Data,in the Last 106 Years Returns on Stocks

question 7

Multiple Choice

According to historical data,in the last 106 years returns on stocks in the U.S.have been negative about ____ of the time.

• A) 50%
• B) 20%
• C) 26%
• D) 42%
• E) 33%

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Definitions:

Saving

The portion of income not spent on current expenditures or taxes, typically set aside for future use or investment.

Disposable Income

Funds households can allocate for spending and saving purposes after income taxes are subtracted.

Consumption

The use of goods and services by households, representing the end-use of products and services in an economy.

Saving

The act of setting aside a portion of current income for future use, typically in a bank account, investments, or other forms of saving vehicles.