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:

Residential Property

Real estate that is used for dwelling purposes, including single-family homes, apartments, condominiums, and townhouses.

Public Policy

A system of laws, regulatory measures, courses of action, and funding priorities set by governmental entities or its representatives.

Illegal Profits

Earnings obtained through activities that are unlawful or against regulatory guidelines.

Hijack

The act of unlawfully seizing control of a vehicle, such as an airplane or ship, often to demand a ransom or achieve a political goal.