In a Group of Five Individuals,two Report Annual Incomes of $10,000,and

question 50

Multiple Choice

In a group of five individuals,two report annual incomes of $10,000,and the other three report incomes of $14,000,$15,000,and $31,000,respectively.The mode of this group's distribution of annual incomes is

• A) $10,000.
• B) $15,000.
• C) $16,000.
• D) $31,000.

---

Definitions:

Real Rate of Return

The annual percentage profit earned on an investment, adjusted for changes in the price level due to inflation or deflation.

Annual Interest Rate

The percentage increase in money per year when it is lent or invested, excluding the effects of compounding.

Rate of Inflation

The percentage increase in prices for goods and services over a period, decreasing the purchasing power of money.

Risk Premium

The additional yield beyond the risk-free rate that investors demand as a reward for taking on the risk associated with an investment.