According to Jeremy Siegel, the real return on stocks over the long-term has averaged about:

According to Jeremy Siegel, the real return on stocks over the long-term has averaged about:    A.  6.7 percent B.  8.7 percent C.  10.4 percent D.  12.3 percent E.  14.8 percent Refer to section 12.5

39.

The historical record for the period 1926-2010 supports which one of the following statements?    A.  A higher-risk security will provide a higher rate of return next year than will a lower-risk security. B.  If you need a stated amount of money next year, your best investment option today for those funds would be long-term government bonds. C.  Increased long-run potential returns are obtained by lowering risks. D.  It is possible for small-company stocks to more than double in value in any one given year. E.  Inflation was positive each year throughout the period of 1926-2010. Refer to sections 12.2 and 12.4

40.

Which of the following statements are true based on the historical record for 1926-2010? I. Risk and potential reward are inversely related. II. Risk-free securities produce a positive real rate of return each year. III. Returns are more predictable over the short-term than they are over the long-term. IV. Bonds are generally a safer investment than are stocks.    A.  I only B.  IV only C.  II and III only D.  II and IV only E.  II, III, and IV only Refer to sections 12.3 and 12.4

41.

Estimates of the rate of return on a security based on a historical arithmetic average will probably tend to _____ the expected return for the long-term and estimates using the historical geometric average will probably tend to _____ the expected return for the short-term.    A.  overestimate; overestimate B.  overestimate; underestimate C.  underestimate; overestimate D.  underestimate; underestimate E.  accurately; accurately Refer to section 12.5