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28 Sep 2019
Consider the following information on large-company stocks for a period of years.
Series
Arithmetic Mean
Large-company stocks 14.5 % Small-company stocks 16.4 Long-term corporate bonds 6.2 Long-term government bonds 6.1 Intermediate-term government bonds 5.6 U.S. Treasury bills 3.8 Inflation 4.4
Required:
(a) What was the arithmetic average annual return on large-company stocks in nominal terms? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Nominal return %
(b) What was the arithmetic average annual return on large-company stocks in real terms? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Real return %
Consider the following information on large-company stocks for a period of years. |
Series | Arithmetic Mean | |
Large-company stocks | 14.5 | % |
Small-company stocks | 16.4 | |
Long-term corporate bonds | 6.2 | |
Long-term government bonds | 6.1 | |
Intermediate-term government bonds | 5.6 | |
U.S. Treasury bills | 3.8 | |
Inflation | 4.4 | |
Required: |
(a) | What was the arithmetic average annual return on large-company stocks in nominal terms? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Nominal return | % |
(b) | What was the arithmetic average annual return on large-company stocks in real terms? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Real return | % |
Hubert KochLv2
28 Sep 2019