Question: In class, we learned that stocks return about 1 0 % annually ( but of course, this is just an average return ) . Which

In class, we learned that stocks return about 10% annually (but of course, this is just an average return). Which of the following statements is correct regarding this return?
a. Interest on stock holdings compound continuously. This 10% return is based on the interest received if stocks compounded annually.
b. Interest on stock holdings compound continuously. This 10% return is a continuously compounded interest rate.
c. Interest on stock holdings compound irregularly. This 10% return is based on the interest received if stocks compounded annually.
d. Interest on stock holdings compound irregularly. This 10% return is based on the interest received if stocks compounded continuously.
In class, we learned that stocks return about 1 0

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