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Consider the following information on large-company stocks from 1926 through 2008. Series Arithmetic Mean Small-company stocks 16.4 % Large-company stocks 11.7 Long-term corporate bonds 6.2
Consider the following information on large-company stocks from 1926 through 2008. Series Arithmetic Mean Small-company stocks 16.4 % Large-company stocks 11.7 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 3.1 What was the arithmetic average annual return in nominal terms? What was the arithmetic average annual return in real terms? Part 2: You
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