The S&P TSX Composite Index Delivered a Return of 14

question 95

Multiple Choice

The S&P TSX Composite index delivered a return of 14.48%,24.13%,17.26% and 9.83% over four successive years.What is the arithmetic average annual return per year?

• A)16.43%
• B)20.8%
• C)14.48%
• D)18.54%
• E)15.96%

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Definitions:

Common Stock

Equity shares issued by a company giving shareholders voting rights and a residual claim on corporate earnings and assets.

Par Value

Par value is the nominal or face value of a stock or bond as stated by the issuer, which might not reflect its market value.

Shares

Units of ownership interest in a corporation or financial asset, which provide dividends and voting rights to the shareholder.

Preferred Stock

A category of corporate ownership that ranks above common stock in both asset claims and earnings, typically accompanied by set dividend payments.