Assume That for a 10-Year Period Inflation Averaged 2

question 59

Multiple Choice

Assume that for a 10-year period inflation averaged 2.8 percent,U.S.Treasury bills returned 3.3 percent,and long-term corporate bonds earned 5.9 percent.What was the real rate of return on long-term corporate bonds for the period?

• A)2.8%
• B)3.1%
• C)9.5%
• D)9.9%
• E)-.2%

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Definitions:

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A quantitative approach to trading that uses statistical models to identify price inefficiencies among securities for profit.