Problem $2-09$

the following long$-$run annual rates of return for alternative investment instruments:

The annual rate of inflation during this period was $2$ 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:

$\%$

$\%$

$\%$

$\%$

$\%$