As Table 6-6 shows, the geometric mean return for stocks over a long period has been 9.6

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As Table 6-6 shows, the geometric mean return for stocks over a long period has been 9.6 percent. Thus, on average, on a compound basis, stocks have averaged a 9.6 percent total return per year over a long time period. Should investors be surprised if they hold stocks for a 10-year period, or a 15-year period, and earn an average return of only 1 or 2 percent?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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