Student responses may vary. The effects of experiencing repeated, difficult change are not clear. One possibility is that experiencing traumatic change will "inoculate" people and leave them better prepared to change again without such an intense or prolonged period of adjustment. For example, having experienced and survived the loss of two jobs in five years, a person could become confident about taking more risky, less secure jobs in the future. However, it is also possible that repeated change leaves a person less resilient and more vulnerable to adverse effects from subsequent change. The explanation involves prolonged stress and the inability to completely resolve the emotional trauma of an earlier change. For example, after losing two jobs in five years as a result of downsizing, a person might not be able to deal with the threat of losing another job and seeks early retirement. Research on the cumulative effects of experiencing repeated, intense changes is still limited, but it suggests that the more common effect is to increase stress and frustration. The stress caused by earlier changes and a person's self-efficacy for change jointly determine how the person will react to more changes. Even for people with strong confidence in their ability to handle change, multiple changes in a short period of time can undermine commitment. People are likely to feel frustration and a sense of injustice if the burden of implementing change is placed on them without adequate support from the organization. Feelings of being unjustly treated are intensified when most of the benefits of the changes will accrue to others, such as owners and top management.

A

Investors are comparing the nominal rates of return. The important thing to consider is the real rate of return, which considers the effects of inflation. If the real rate of return has held constant, then investors are neither better nor worse off than they were previously. If the real rate of return has increased, then investors are actually better off even though the nominal rate of return decreased significantly. Only if the real rate of return has decreased would investors be worse off. The Fisher formula should be mentioned as the method of determining the real rate of return.