Final answer:
The historical average annual return from stock investments in the S&P 500 index, which accounts for both dividends and capital gains, would be closest to 11.3% based on the given options.
Step-by-step explanation:
The historical average annual return from stock investments, specifically from the stocks in the S&P 500 index, takes into consideration both dividends and capital gains over a given period.
From the 1950s through the 1980s, firms generally paid dividends of about 4% of the stock value. However, since the 1990s, dividends have decreased to a return of approximately 1% to 2%.
The total annual rate of return, which includes capital gains as well, has varied across the decades, with the 1980s and 1990s experiencing higher capital gains compared to dividends, while dividends have remained lower since the 2000s.
Based on the information provided and Table 17.2, although the specific historical average annual return over this timeframe was not explicitly stated in the text, the closest match from the provided options considering the capital gains data presented would be 11.3%.