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Consider the following information on large-company stocks for a period of years. Series Arithmetic Mean Large-company stocks 13.5% Small-company stocks 16.4 Long-term corporate bonds 6.2

Consider the following information on large-company stocks for a period of years. Series Arithmetic Mean Large-company stocks 13.5% 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 4.0 Required: (a)What was the arithmetic average annual return in nominal terms? (b)What was the arithmetic average annual return in real terms?

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