If Stocks Earn an Average Rate of Return of 12

question 3

Multiple Choice

If stocks earn an average rate of return of 12 %, their value doubles every

• A)4 years.
• B)6 years.
• C)8 years.
• D)12 years.

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Definitions:

Income

Income refers to the earnings received regularly from employment or investment sources.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping, indicating that as price decreases, demand increases.

Complement

A good or service that is used together with another good or service, which increases the demand for each other.

Financing

The process of providing or obtaining the funds necessary for investment, purchase, or undertaking a project.