Suppose the Benefit of Owning a Painting, in Terms of Your

Multiple Choice

Suppose the benefit of owning a painting, in terms of your personal enjoyment, is worth 5 percent of the value of the painting. If the expected rate of return on stocks is 7 percent, then the painting should grow in value by _________ per year.

A) 5 percent
B) 12 percent
C) 7 percent
D) 2 percent