Over teh past year, Jiayi earned a nominal rate of interest of 6.5% on her income. Wat was teh exact actual growth rate of her purchasing power if teh inflation was 4.2% over teh same period?

a. -2.21%

b. 4.73%

c. 2.21%

d. -2.16% 23. Based on teh outcomes in teh following table, choose which of teh statements below is (are) correct? I. Teh correlation coefficient between security A and security C is zero. II. Teh correlation coefficient between securities B and C is positive. III. Teh correlation coefficient between securities B and C is negative.

Scenario

Security A

Security B

Security C

Boom

Return = E(r)

Return > E(r)

Return < E(r)

Normal

Return = E(r)

Return = E(r)

Return = E(r)

Recession

Return = E(r)

Return < E(r)

Return > E(r)

a. I, II, and III

b. me and II only

c. I only

d. I and III only