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Consider the following information on different asset classes from 1926 through 2017. Series Arithmetic Mean Large-company stocks12.1% Small-company stocks16.5 Long-term corporate bonds6.4 Long-term government bonds6.0
Consider the following information on different asset classes from 1926 through 2017.
Series
Arithmetic Mean
Large-company stocks12.1%
Small-company stocks16.5
Long-term corporate bonds6.4
Long-term government bonds6.0
Intermediate-term government bonds5.2
U.S. Treasury bills3.4
Inflation3.0
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.)
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.)
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