A Way to Evaluate the Performance of a Stock Investment

question 44

Multiple Choice

A way to evaluate the performance of a stock investment is to compare it to

• A)The buy and sell recommendations from analysts
• B)The returns of other stocks in your portfolio
• C)The stocks relevant industry index
• D)The historical return of the Canadian stock market

---

Definitions:

Actual Price Level

The current general price of goods and services in the economy, not adjusted for inflation.

Short-Run Aggregate Supply

The overall quantity of products and services that companies intend to offer for sale within a brief period, based on existing prices.

Aggregate Demand

Overall market demand for goods and services in an economy, determined at a prevailing comprehensive price level for a certain duration.

Equilibrium Output

The level of output where the quantity of goods produced equals the quantity of goods consumed, resulting in market equilibrium.