Question: 3 20 points eBook Hint Print References Problem 10-5 Nominal versus Real Returns [LO 2] Consider the following information on large-company stocks for a period
3 20 points eBook Hint Print References Problem 10-5 Nominal versus Real Returns [LO 2] Consider the following information on large-company stocks for a period of years. Large-company stocks Inflation Arithmetic Mean a. Nominal return b. Real return a. What was the arithmetic average annual return on large-company stocks in nominal terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the arithmetic average annual return on large-company stocks in real terms? Note: Do not round termediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % 13.9% 3.3 %
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