Refer to Table 12.4. TABLE 12.4 Historical returns and standard deviations, 1957-2019 Canadian common stocks U.S. common stocks (Cdn $) Long bonds Investment Small stocks TSX Venture stocks Inflation Real terms Arithmetic Average Return (%) 10.05 % % 11.99 8.30 12.04 5.25 3.65 Standard Deviation (%) 5.49 16.32 16.46 9.50 Treasury bills Average returns on small stocks and TSX Venture stocks are based on data from 1970-2019 and 2002-2019, respectively. Sources: Author calculations based on data from Statistics Canada and S&P Dow Jones Indices (accessed September 30, 2020), and Globe and Mail (accessed October 2, 2020). 25.49 40.40 3.03 a. What was the average annual return on Canadian stock from 1957 through 2014 in nominal terms? (Round the final answer to 2 decimal places.) Nominal terms 3.91 b. What was the average annual return on Canadian stock from 1957 through 2014 in real terms? (Round the final answer to 2 decimal places.)

Refer to Table 12.4 Historical returns and standard deviations, 1957-2019 Average retuins on small stocks and TSX Venture stocks are based on data from 1970-2019 and 2002-2019, respectively. Sources. Author calculations basec on data from Statistics Canada and S\&P Dow Jones incices (accessed September 30 , 2020 and Globe and Mall laccessed October 2. 2020) What was the average annual return on Canadian stock from 1957 through 2014 in nominal terms? (Round the final answer to 2 decimal places.) Nominal terms b. What was the overage a ploces.) Realterms