Question: Convert the asset returns by decade presented in the table into real rates. Repeat the analysis of Challenge Problem 20 for the real rates ofreturn.
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1940s 1950s 1960s 1970s 1980s 1990s 1920s -3.72% 3.98 1930s 7.28% 4.60 8.75% 5.90 6.63 12.46% 17.60 11.50 12.01 13.84% 18.20 8.60 7.74 20.63% 19.01% 13.72% Small-company stocks Large-company stocks Long-term government Intermediate-term 9.11 3.59 1.70 19.41 0.25 1.11 7.84 1.14 3.41 18.36 1.25 3.77 3.91 5.02 2.93 government Inflation Based on the period 1926-1929 0.37 5.36 1.87 2.22 3.89 2.52 6.29 7.36 9.00 5.10 3.56 0.30 Treasury bills 2.04
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