Question: Consider the following information on different asset classes from 1926 through 2017 Series Arithmetic Mean Large-company stocks 12.1% Small company stocks 16.5 Long-term corporate bonds
Consider the following information on different asset classes from 1926 through 2017 Series Arithmetic Mean Large-company stocks 12.1% Small company stocks 16.5 Long-term corporate bonds 6.4 Long-term government bonds 6.0 Intermediate term government 5.2 bonds U.S. Treasury bills 3.4 Inflation 3.0 tes a. What was the arithmetic average annual return on large company stocks in nominal terms? (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? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Nominal return b. Real return 2.91% 3.30%
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