Studies of rates of return on common stocks suggest
A) the average return is about 7.4 percent annually
B) over a period of years, the rate is approximately 9 to 10 percent
C) equity investors rarely sustain losses
D) dividends account for over half the return

Question

Studies of rates of return on common stocks suggest​
A) ​the average return is about 7.4 percent annually
B) ​over a period of years, the rate is approximately 9 to 10 percent
C) ​equity investors rarely sustain losses
D) ​dividends account for over half the return

Quizplus · Accepted Answer

Studies suggest that over a period of years, the rate of return on common stocks is approximately 9 to 10 percent. Therefore, option B is correct. Option A is incorrect because the average return is not exactly 7.4 percent annually. Option C is incorrect because equity investors do sustain losses. Option D is incorrect because dividends do not always account for over half the return.

Studies of Rates of Return on Common Stocks Suggest​

Studies of Rates of Return on Common Stocks Suggest