You are given the following long-run annual returns for alternative investments: Government of Canada T-bills 3.50% Large-cap

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You are given the following long-run annual returns for alternative investments:

Government of Canada T-bills 3.50%

Large-cap common stock 11.75%

Long-term corporate bonds 5.50%

Long-term government bonds 4.90%

Small-capitalization common stock 13.10%

The annual inflation rate during this period was 3%.

Compute the real return on these investment alternatives.

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Investment Analysis And Portfolio Management

ISBN: 9780176500696

1st Canadian Edition

Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown

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