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

question 17

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 large capitalization stocks?

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

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Definitions:

Kaplan's Model

A theoretical model, possibly referring to areas such as human sexual response or psychological development, depending on context. Without specific context, its definition could vary.

Normal

Pertaining to what is considered common, usual, or conforming to the standard or the average; often used in statistical or medical contexts to define the typical.

DSM-5 Disorder

A mental disorder as classified in the fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a tool for mental health diagnosis.