Question: Consider the following information on different asset classes from 1926 through 2011. Series Arithmetic Mean Large-Company Stocks 11.8% Small-Company Stockst 16.5 Long-term corporate bonds 6.4
Consider the following information on different asset classes from 1926 through 2011.
Series Arithmetic Mean
Large-Company Stocks 11.8%
Small-Company Stockst 16.5
Long-term corporate bonds 6.4
Long-term government bonds 6.1
Intermediate-term government bonds 5.5
U.S. Treasury bills 3.6
Inflation 3.1
Requirement 1: What is the real return on long-term government bonds? ______% (two decimal places)
Requirement 2: What is the real return on long-term corporate bonds? ______% (two decimal places)
I was given the wrong answer (and missing information) on this the first time...
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