With Reference to the Data Above, What Is the Expected

question 41

Multiple Choice

With reference to the data above, what is the expected real rate of return on the 2-year Treasury security?

• A) 12.6%
• B) 9.1%
• C) 5.4%
• D) 4.2%
• E) 3.5%

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Definitions:

Unrealistic Optimism

The tendency to overestimate the likelihood of positive outcomes and underestimate the possibility of negative outcomes.

High Self-esteem

A positive assessment of one's own worth or value, characterized by confidence in one’s abilities and qualities.

Fear of Failure

An apprehension or anxiety about failing to achieve a goal or meet expectations, which can hinder one's willingness to take risks or pursue opportunities.

Competing Commitments

Conflicting obligations or priorities that pull individuals in different directions, often hindering progress towards a goal or decision.