Over the 10-Year Period from 1978 Through 1987, the Compound

question 114

Multiple Choice

Over the 10-year period from 1978 through 1987, the compound annual rate of return on U.S.Treasury bills was 9.17 percent.Over the same time period, the average annual inflation rate was 6.39 percent.Therefore,

• A)the inflation premium was 2.78 percentage points
• B)the real expected rate of return was 9.17 percentage points
• C)the realized real rate of return was 2.78 percentage points
• D)the required rate of return was 6.39 percentage points

---

Definitions:

Pay-for-Performance

A compensation strategy where employees' pay is directly tied to their performance, productivity, or achievement of specific targets.

Job Feedback

Information provided by employers or supervisors regarding an employee's work performance, intended to reinforce strengths or identify and correct weaknesses.

Task Identity

The degree to which a job requires completion of a whole and identifiable piece of work.

Skill Variety

The degree to which a job requires a variety of different activities and skills to carry out the responsibilities involved.