Question: Consider the following information on different asset classes from 1926 through 2017 Series Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds Intermediate-term government
Consider the following information on different asset classes from 1926 through 2017 Series Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds Intermediate-term government bonds U.S. Treasury bills Inflation Arithmetic Mean 12.1% 16.5 6.4 6.0 5.2 3.4 3.0 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
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