Exhibit 32 The Annual Rate of Inflation Is 2

question 69

Multiple Choice

Exhibit 3.2.
Use the Information Below for the Following Problem(S)
                                               Real Retums
$\begin{array}{lc}\text { Investment } & \text { Real Returns } \\\hline \text { Large company stock } & \text { Real Annual Return } \\\text { Small capitalization stock } & 6.50 \% \\\text { Long-term corporate bonds } & 8.60 \% \\\text { Long-term government bonds } & 3.60 \% \\\text { U.S. Treasury bills } & 2.80 \% \\\text { 1.03\% }\end{array}$

The annual rate of inflation is 2.5%
-Refer to Exhibit 3.2.What is the small capitalization stock nominal return?

• A) 3.56%
• B) 5.37%
• C) 6.19%
• D) 9.16%
• E) 11.32%

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Definitions:

Postmortem Exam

An examination of a body after death to determine the cause of death or the character and extent of changes produced by disease, commonly referred to as an autopsy.

Autopsy

A medical examination of a body after death to determine the cause of death or the character and extent of changes produced by disease.

Histology

The study of the microscopic structure of tissues.

Extracellular Material

Substances found outside of cells within a tissue or organism, which provides structural and biochemical support to surrounding cells.