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:

Reasoning Errors

Reasoning errors are mistakes or flaws in the logical process used to deduce or infer conclusions, often leading to inaccurate judgments or assessments.

Financial Decisions

Choices made by individuals or businesses related to investments, budgeting, savings, and spending that affect financial health and goals.

Over-Optimism

A bias in judgment or planning that causes people to overestimate the likelihood of positive outcomes.

Reasoning Errors

Mistakes in logic or judgement that can lead to incorrect conclusions or decisions.