Question
Item 5Item 5 Consider the following information on different asset classes from 1926 through 2017. Series Arithmetic Mean Large-company stocks 12.1 % Small-company stocks 16.5
Item 5Item 5 Consider the following information on different asset classes from 1926 through 2017. Series Arithmetic Mean Large-company stocks 12.1 % Small-company stocks 16.5 Long-term corporate bonds 6.4 Long-term government bonds 6.0 Intermediate-term government bonds 5.2 U.S. Treasury bills 3.4 Inflation 3.0 a. What is the real return on long-term government bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the real return on long-term corporate bonds? (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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