Studies of investment returns suggest that investors can expect to earn at least 15 percent annually.

Question

Quizplus · Accepted Answer

Most studies of investment returns suggest that average annual returns for diversified investment portfolios typically range from 6% to 10%, depending on the mix of assets and the time period considered. Expecting to earn at least 15% annually is overly optimistic and not supported by historical data for average investors.

Studies of Investment Returns Suggest That Investors Can Expect to Earn