Historical studies of rates of return on large
Stocks suggest
A) the average return is about 6.4 percent annually
B) over a period of years, the rate approximates 9-10 percent
C) equity investors rarely sustain losses
D) dividends account for over half the return

Question

Quizplus · Accepted Answer

Historical studies have suggested that over a period of years, the rate of return on large stocks approximates 9-10 percent. This is typically higher than other investment options such as bonds or savings accounts. However, it is important to note that there are still risks associated with investing in stocks and it is not a guaranteed return.

Historical Studies of Rates of Return on Large