Over the Past Two Centuries,the Average Annual Rates of Return

question 37

Multiple Choice

Over the past two centuries,the average annual rates of return were about

• A)5 percent for stocks and about 1.5 percent for short-term government bonds.
• B)6 percent for stocks and about 2.5 percent for short-term government bonds.
• C)8 percent for stocks and about 3 percent for short-term government bonds.
• D)None of the above is correct.

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Definitions:

Special

Distinguished or different from what is ordinary or usual, often implying superiority or a specific purpose.

Bearer Paper

A negotiable instrument or document of title that confers entitlement to the holder or bearer, with no named payee.

Endorsement

The act of signing one's name on the back of a check or other negotiable instrument, or a public declaration of support for a person, product, or service.

Delivery

The act of transferring an item from the seller to the buyer, where the legal ownership is passed.