Consider the Following Average Annual Returns

question 21

Multiple Choice

Consider the following average annual returns:

What is the excess return for the S&P 500?

• A) 11.5%
• B) 16.3%
• C) 0%
• D) 9.3%

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Definitions:

Sensorimotor

The stage in Piaget's theory of cognitive development (birth to about 2 years) where infants learn about the world primarily through their senses and actions.

Centration

A cognitive limitation in young children's thinking, marked by focusing on one aspect of a situation while neglecting others, characteristic of the preoperational stage.

Conservation Skills

Cognitive abilities that enable a child to understand that quantity or amount does not change when its form or appearance is altered, a concept developed by Jean Piaget.

Preoperational Thought

A stage in Piaget's theory of cognitive development where children (ages 2-7) begin to engage in symbolic play and struggle with logic and understanding others' perspectives.