Suppose the benefit of owning a painting in terms of our personal enjoyment is worth 5% of the value of the painting. If the expected rate of return on stocks is 7%, then the painting should grow in value by per year O 5% O 12% O 7%O 2%

A stock, often known as equity, is a security that reflects ownership of a portion of the issuing corporation. Shares are stock units that entitle the owner to a proportion of the corporation's assets and income based on how much stock they possess.

Stocks are mostly purchased and sold on stock exchanges and form the foundation of many individual investors' portfolios. Stock trades must adhere to government laws designed to safeguard investors from fraudulent acts.

Explain:

If the projected rate of return on stocks is 7% and the benefit is 5% of the painting's value, the painting's value should increase by 2% per year.

So, painting should grow in value by 2% per year.

expected rate of return - value = 7% - 5 % = 2%

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