Assume Inflation Averaged 3

question 29

Multiple Choice

Assume inflation averaged 3.2 percent during a period in which U.S.Treasury bills earned 4.3 percent.What was the average real rate of return on large-company stocks if the risk premium on those stocks was 7.4 percent for the period?

• A)8.5%
• B)3.2%
• C).1%
• D)7.5%
• E)14.9%

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Definitions:

Pioneer Species

Species that can colonize a new habitat.

Keystone Species

A species that has a disproportionately large effect on community structure relative to its abundance.

Evolved

The process through which species undergo changes over time, often through genetic variation and natural selection, leading to adaptations and diversity among organisms.

Competitive Exclusion

A principle stating that two species competing for the same resources cannot stably coexist if other ecological factors are constant; one will always outcompete the other.