Chapter 10, 3

Consider the following information on large-company stocks for a period of years.

Series	Arithmetic Mean
Large-company stocks	13.3	%
Inflation	3.8

a. What was the arithmetic average annual return on large-company stocks in nominal terms? (Do not round intermediate calculations and enter your answer as a percent 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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Real return %