1. A bank advertises a savings account that pays 3.0% compounded annually.
A. If the CPI rises by 2.0% over the next 12 months, what would be the real rate of return on the account for the period? Express your answer to 2 decimal places.
2. Has TIPS (Treasury Inflation-Protected Securities) tended to outperform inflation, or not? Explain your answer.
3. A/an ________________________ is when a group of investment banks agrees to move an IPO issue together.
(a) Underwriting syndicate
(b) Overwriting syndicate
(c) Collective syndicate
(d) Collaborative syndicate
(e) none of the above