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Over the past four years, large-company stocks and U.S. Treasury bills have produced the returns stated below. Year 1Year 2Year 3Year 4 Percent return on

Over the past four years, large-company stocks and U.S. Treasury bills have produced the returns stated below.

Year 1Year 2Year 3Year 4

Percent return on large-company stocks125918

Percent return on U.S. Treasury bills 2334

During this period, inflation averaged 2.9%. Given this information, the average real rate of return on large-company stocks was ___ percent as compared to _____ percent for Treasury bills and the standard deviation for large-company stocks was _____ as compared to ____ for Treasury bills.

a. 7.87; 0.10; 4.87; 0.67
b. 7.87; 0.10; 5.48; 0.82
c. 7.87; 1.00; 6.24; 1.01
d. 11.00; .03; 6.24; 1.01
e. 11.00; .03; 5.48; 0.82

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