1. Select one of the following asset classes: Large-company stocks, small-company stocks or long-term corporate bonds
Describe a particular aspect of your chosen asset class: provide the definition, provide an example that belongs to the class, describe the history of total returns, or describe the historical mean and standard deviation.
2. You are buying a sofa. You will pay $200 today and make three consecutive annual payments of $300 in the future. The real rate of return is 6.0 percent, and the expected inflation rate is 4 percent. What is the actual price of the sofa? (Round intermediate calculation and final answer to 2 decimal places, e.g. 15.25.)
Actual Price: $____________