Consider the Following Average Annual Returns: What Is the Excess

question 30

Multiple Choice

Consider the following average annual returns: What is the excess return for the S&P 500?

• A)11.5%
• B)16.3%
• C)0%
• D)9.3%

---

Definitions:

Positive Reinforcement

The process of encouraging or establishing a pattern of behavior by offering rewards for desired behaviors.

Desirable Behaviour

Refers to actions or responses that are encouraged, rewarded, or sought after in a given context, particularly because they achieve positive outcomes.

Managers

Individuals who are responsible for directing and overseeing the work of a group of people in an organization.

Reinforcement Theory

A psychological concept suggesting that behavior can be controlled or modified through the use of rewards or punishments.