Exhibit 32 The Annual Rate of Inflation Is 2

question 76

Multiple Choice

Exhibit 3.2.
Use the Information Below for the Following Problem(S)
                                               Real Retums
$\begin{array}{lc}\text { Investment } & \text { Real Returns } \\\hline \text { Large company stock } & \text { Real Annual Return } \\\text { Small capitalization stock } & 6.50 \% \\\text { Long-term corporate bonds } & 8.60 \% \\\text { Long-term government bonds } & 3.60 \% \\\text { U.S. Treasury bills } & 2.80 \% \\\text { 1.03\% }\end{array}$

The annual rate of inflation is 2.5%
-Refer to Exhibit 3.2.What is the T-bill nominal return?

• A) 3.56%
• B) 5.37%
• C) 6.19%
• D) 9.16%
• E) 11.32%

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Definitions:

Effective Communication

The exchange of information in a way that is clearly understood by all parties involved.

Fundamental Barriers

Core obstacles that impede progress, often requiring significant effort or change to overcome.

Noise

Unwanted or distracting sounds, or in communication and information theory, extraneous signals that interfere with the transmission of information.

Communication Process

The series of steps through which information is transmitted and received between communicators.