USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 72

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the following information
Nominal annual return on U.S. government T-bills for year 2018 = 3.5%
Nominal annual return on U.S. government long-term bonds for year 2018 = 4.75%
Nominal annual return on U.S. large-cap stocks for year 2018= 8.75%
Consumer price index January 1, 2018 = 165
Consumer price index December 31, 2018 = 169
-Refer to Exhibit 1.10. Calculate the annual real rate of return for U.S. T-bills.

• A) 2.26%
• B) 1.81%
• C) -0.5%
• D) 1.05%
• E) 0%

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Definitions:

Consciousness

The state of being aware of and able to think and perceive one's surroundings, thoughts, and sensations.

Information Processing

A theory describing the mental processes involved in the perception, storage, and manipulation of information.

Conscious Processing

The mental activities that involve awareness and attention in the processing of information.

Unconscious Processing

The mental activities of which individuals are not aware but that influence emotions, judgments, and behaviors.