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...

If inflation is 3 Real rate of return 1 return 1 inflation rate ...

You are given the following long-run annual rates of return for alternative investment instruments: U.S. Government T-bills

Question:

You are given the following long-run annual rates of return for alternative investment instruments:
U.S. Government T-bills ............. 3.50%
Large-cap ............11.75
Long-term corporate bonds ............ 5.50
Long-term government bonds ........... 4.90
Small-capitalization ........13.10
The annual rate of inflation during this period was 3 percent. Compute the real rate of return on these investment alternatives. Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...