During the Last Two Centuries, After Adjustment for Inflation

question 184

Multiple Choice

During the last two centuries, after adjustment for inflation,

• A) corporate bonds have yielded a real return of approximately 7 percent annually, compared to a real return of about 3 percent for corporate stocks.
• B) corporate stocks have yielded a real return of approximately 7 percent annually, compared to a real return of about 3 percent for bonds.
• C) both corporate stocks and bonds have yielded a real rate of return of about 3 percent.
• D) both corporate stocks and bonds have yielded a real rate of return of about 7 percent.

---

Definitions:

Narrow Minded

Having or showing a limited outlook or willingness to consider alternative ideas, perspectives, or options.

Operations

The day-to-day activities involved in running a business, producing goods, or providing services, focusing on efficiency and effectiveness of the process.

Internal Locus

The belief that individuals control their own destiny and outcomes are primarily the result of their own efforts.

Trust Instincts

Reliance on one's innate intuition or feelings in making decisions, especially in situations where complete information is not available.