Exhibit 31
Use the Information Below for the Following Problem(S)

question 70

Multiple Choice

Exhibit 3.1
Use the Information Below for the Following Problem(S)
$\begin{array}{lc}\text { Security } & \text { Annual Percentage Return } \\\hline \text { U.S. government T-bills } & 3.04 \\\text { Long-term government bonds } & 5.75 \\\text { Long-term corporate bonds } & 6.80 \\\text { Large capitalization common stocks } & 13.50 \\\text { Small canitalization common stocks } & 15.60\end{array}$

The annual rate of inflation is 2%.
-Refer to Exhibit 3.1.What is the real return on small capitalization stocks?

• A) 1.02%
• B) 3.68%
• C) 4.71%
• D) 11.27%
• E) 13.33%

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Definitions:

Emotional Manipulation

Emotional Manipulation is a psychological strategy aimed at influencing or controlling others' feelings or actions through deceptive or underhanded tactics for personal gain or advantage.

Advertisers

Companies or individuals who promote their products, services, or ideas through various media channels to influence public perception or drive consumer behavior.

Malignant Envy

refers to feelings of envy that are so intense they can lead to destructive behavior towards the envied person or entity.

Superior

Relates to something that is higher in quality, rank, or importance compared to others.