You Are Analyzing the Performance of Different Asset Classes for a Foreign

question 69

Multiple Choice

You are analyzing the performance of different asset classes for a foreign economy.You find that over the last 60 years the average annual return for equities was 12% while that of corporate bonds was 10% and the rate of inflation was about 3%.If inflation were projected to be around 1% for the foreseeable future,then what would you project the return of equities to be during that same foreseeable period?

• A) 12%
• B) 11%
• C) 10%
• D) 9%

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