Question 1
Benefits of common stock ownership include
◦ easy to buy and sell.
◦ low trading costs.
◦ potential for high returns.
◦ all of these are benefits.
Question 2
If stocks earn an average rate of return of 11 %, their value doubles approximately every
◦ 5.8 years.
◦ 6.6 years.
◦ 7.2 years.
◦ 9.1 years.