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

Question

Quizplus · Accepted Answer

Studies suggest that over a period of years, the rate of return on large stocks is approximately 10 percent. The other options are incorrect as the average return is not exactly 7.4 percent annually, equity investors can and do sustain losses, and dividends may not account for over half the return in all cases.

Studies of Rates of Return on Large Stocks Suggest