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Please answer all parts, thank you in advance! :) You are given the following long-run annual rates of return for alternative investment instruments: U.S. Government
Please answer all parts, thank you in advance! :)
You are given the following long-run annual rates of return for alternative investment instruments: U.S. Government T-bills Large-cap common stock Long-term corporate bonds Long-term government bonds Small-capitalization common stock 3.65% 11.70 6.00 5.00 12.95 The annual rate of inflation during this period was 3 percent. Compute the real rate of return on these investment alternatives. Do not round intermediate calculations. Round your answers to two decimal places. Real Rate of Return % % U.S. Government T-bills: Large-cap common stock: Long-term corporate bonds: Long-term government bonds: Small-capitalization common stock: % %Step by Step Solution
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