The Average Annual Return on Small-Company Stocks Was About _____

question 79

Multiple Choice

The average annual return on small-company stocks was about _____ percent greater than the average annual return on large-company stocks over the period 1926-2010.

• A)3
• B)5
• C)7
• D)9
• E)11

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Definitions:

Indifference Curve

A graph representing combinations of goods that provide the same level of satisfaction to a consumer.

Rational Consumer

An economic concept describing an individual who makes choices that maximize their utility or benefit, based on their preferences and constraints.

Utility Function

A mathematical representation used in economics to model the preference or satisfaction a consumer derives from consuming goods and services.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another.