Although there are annual ups and downs, over the long run, growth in the stock market averages about 9% per year. A model that best describes the value of a stock portfolio is probably:
A) power
B) quadratic
C) linear
D) exponential
E) logarithmic

Question

Quizplus · Accepted Answer

Since the growth in the stock market is consistently positive and compound interest is involved, an exponential model best describes the growth of a stock portfolio over time.

Although There Are Annual Ups and Downs, Over the Long