Exhibit 19-2

question 15

Multiple Choice

Exhibit 19-2.Hugh Wallace has the following information regarding three investment options.Each investment option involves the same one-year period. Refer to Exhibit 19-2.What real percent rate of return will Hugh earn if he invests in option 2?

• A)-2.5%
• B)4.58%
• C)0.96%
• D)-3.37%

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Definitions:

Subjective Experience

Personal perceptions and feelings that are unique to an individual and not necessarily observable by others.

Fundamental Attribution Error

The tendency for observers to over-emphasize personality traits and under-emphasize situational factors when explaining other peoples' behavior.

Moderator

A variable that affects the strength or direction of the relationship between an independent and a dependent variable in statistical analyses.

Debate Topic

A point of discussion chosen for a structured exchange of arguments and counterarguments between parties with differing views.