If Long Term GDP Growth Is 2

question 49

Multiple Choice

If long term GDP growth is 2.5% annually,inflation is 3% per year,the dividend yield is 4%,and short term interest rates are 6%,then

• A) inflation-adjusted capital gains must be 0.5% per year
• B) the equity risk premium must be 3.5%
• C) dividends must be growing by 5% per year
• D) dividends are not growing and share prices are showing capital losses of 1% per year
• E) any broad-based stock market index (such as the S&P 500) will be rising at a rate of 9.5% per year

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Definitions:

Dopamine

A neurotransmitter associated with pleasure, movement, and attention; often referred to as the "feel-good" chemical in the brain.

Serotonin

A neurotransmitter involved in numerous bodily functions, including mood regulation, sleeping, and digestion.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by problems with focus, hyperactivity, and impulsiveness.

School-aged Children

Children in the age range typically associated with attending primary and early secondary education, usually from 6 to 12 years old.