What has been the average annual nominal rate of return on a portfolio of U.S. common stocks over the past 107 years (from 1900 to 2006)?
A) Less than 2%
B) Between 2% and 5%
C) Between 5% and 11%
D) Greater than 11%

Question

Quizplus · Accepted Answer

According to historical data, the average annual nominal rate of return on a portfolio of U.S. common stocks from 1900 to 2006 is greater than 11%. Specifically, it is approximately 10% to 11% after adjusting for inflation.

What Has Been the Average Annual Nominal Rate of Return