Sara Would Like to Evaluate the Performance of Her Portfolio

question 51

Multiple Choice

Sara would like to evaluate the performance of her portfolio over the past 10 years. What compound annual rate of return has she achieved is she invested $12,000 10 years ago and now has $25,000?

• A) Between 8% and 9%
• B) Between 10% and 11%
• C) Between 9% and 10%
• D) Between 7% and 8%

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Definitions:

Defense Mechanism

Psychological strategies used by individuals unconsciously to protect themselves from anxiety or to cope with reality.

Catharsis

Catharsis is the process of releasing and thereby providing relief from strong or repressed emotions, often through activities like art, writing, or conversation.

Maladaptive Emotional Responses

Emotional reactions that are counterproductive and interfere with a person's ability to cope with or adjust to situations.

Rigid and Logical Thinking

A cognitive style characterized by inflexible adherence to rules or the logical analysis of information, often at the expense of emotional understanding or creative problem-solving.