Assume that over the period 19262010 the geometric mean rate of return for Treasury bonds was 5.4

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Assume that over the period 1926–2010 the geometric mean rate of return for Treasury bonds was 5.4 percent. The corresponding number for the rate of inflation was 3 percent. Calculate, two different ways, the cumulative wealth index for government bonds for the period, on an inflation‐adjusted basis.

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Investments Analysis And Management

ISBN: 9781118975589

13th Edition

Authors: Charles P. Jones, Gerald R. Jensen

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