Consider the period 19262014. The geometric mean for the S&P 500 for the entire period was approximately

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Consider the period 1926–2014. The geometric mean for the S&P 500 for the entire period was approximately 10 percent and for the CPI, 3.0 percent. Therefore, the real (inflation‐ adjusted) geometric mean rate of return for large common stocks for the period 1926–2014 was (1.10/1.03) − 1 = 0.068 or 6.8%.

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