Question: TABLE 12.4 Historical returns and standard deviations, 1957-2014 Investment Arithmetic average return (%) 10.30 11.73 8.57 12.81 7.16 3.82 5.88 | Standard deviation (%) 16.50

TABLE 12.4 Historical returns and standard deviations, 1957-2014 Investment Arithmetic average

TABLE 12.4 Historical returns and standard deviations, 1957-2014 Investment Arithmetic average return (%) 10.30 11.73 8.57 12.81 7.16 3.82 5.88 | Standard deviation (%) 16.50 16.44 4.78 25.96 44.35 2.10 3.83 Average returns on small stocks and TSK Venture stocks are based on data from 1970-2014 and 2002-2014, respectvely Canadian common stocks U.S. common stocks(Cdn Long bonds Small stocks TSX Venture stocks Inflation Treasury bills 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 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.) Real terms

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