Q:

What is the historical average stock market return rate?

A:

Quick Answer

The U.S stock market averages a return rate of 11.69 percent based on Standard and Poor's 500, or S&P, a leading market index. The return rate is based on yearly averages that date back to 1926, according to leading financial expert Dave Ramsey.

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Full Answer

The average return of a stock market index does not guarantee an investor a certain rate of return in any particular year. For example, in the 1990s, the rate of return on the S&P was much higher than normal, about 19 percent. The return rate fell below the historical average, however, during the first decade of the current century.

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Related Questions

  • Q:

    What is the S&P 500?

    A:

    The Standard and Poor 500 is a stock market index of 500 top stocks on the New York Stock Exchange, according to About.com. The S&P 500 tracks the value of the shares these 500 companies have issued in order to get an overall picture of the stock market.

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  • Q:

    How do you find a chart of performance ratings for S&P stocks?

    A:

    Individual performance charts for each stock comprising the Standard and Poor's 500 stock index can be viewed on the website Investing.com. These charts allow investors to track the performance of stocks independent of the overarching S&P 500 index and compare them to the performance of the index as a whole.

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  • Q:

    Where can you track stock market performance?

    A:

    Track the stock market's performance on the Nasdaq website by monitoring the three major stock market indices in the United States: the Dow Jones Industrial Average, the S&P 500 stock index and the NASDAQ Composite. Other major indices are the New York Stock Exchange Composite and the Amex Composite.

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  • Q:

    How do you calculate an S&P 500 return?

    A:

    The Standard & Poor's 500 is a stock market index, and its return is calculated in exactly the same way as the return for any stock or portfolio of stocks. This consists of subtracting the cost from the gain and dividing the result by the cost, states Investopedia.

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