Exhibit 31
Use the Information Below for the Following Problem(S)

question 72

Multiple Choice

Exhibit 3.1
Use the Information Below for the Following Problem(S)
$\begin{array}{lc}\text { Security } & \text { Annual Percentage Return } \\\hline \text { U.S. government T-bills } & 3.04 \\\text { Long-term government bonds } & 5.75 \\\text { Long-term corporate bonds } & 6.80 \\\text { Large capitalization common stocks } & 13.50 \\\text { Small canitalization common stocks } & 15.60\end{array}$

The annual rate of inflation is 2%.
-Refer to Exhibit 3.1.What is the real return on long-term corporate bonds?

• A) 1.02%
• B) 3.68%
• C) 4.71%
• D) 11.27%
• E) 13.33%

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Definitions:

Power

Is the probability that one actor within a social relationship will be in a position to carry out his or her own will despite resistance.

Social Relationship

Social relationships encompass the interactions and connections between individuals, ranging from casual acquaintances to intimate bonds.

Resistance

Opposition against an influence, policy, or authority, often expressed through actions or behaviors aimed at countering or challenging it.

Higher Status

Refers to a position of greater authority, respect, or social standing within a hierarchy.