You are given the following long run annual rates of return
You are given the following long-run annual rates of return for alternative investment instruments:
U.S. Government T-bills ............. 3.50%
Large-cap common stock ............ 11.75
Long-term corporate bonds ............ 5.50
Long-term government bonds ........... 4.90
Small-capitalization common stock ........ 13.10
The annual rate of inflation during this period was 3 percent. Compute the real rate of return on these investment alternatives.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help