Figure 131 in Your Textbook Compares the Returns on Various Investments

question 77

Multiple Choice

Figure 13.1 in your textbook compares the returns on various investments over the period 1951-2010.Which of the following is shown to exceed the inflation rate by the widest margin?

• A)Common stocks
• B)Government bonds
• C)Treasury bills
• D)Mutual funds

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Definitions:

Affective Forecasting

The process by which individuals predict their future emotional states or how they will feel in response to future events.

Ego Depletion

The theory that self-control or willpower draws upon a limited pool of mental resources that can be used up.

Physical Arousal

Pertains to the physiological responses of the body that prepare an individual for action, often associated with emotions, exercise, or sexual interest.

Ironic Processing

The psychological process where attempts to suppress certain thoughts make them more likely to surface.