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Problem 2-09 You are given the following long-run annual rates of return for alternative investment instruments: U.S. Government T-bills 3.50 % Large-cap common stock 11.80
Problem 2-09
You are given the following long-run annual rates of return for alternative investment instruments:
U.S. Government T-bills | 3.50 | % |
Large-cap common stock | 11.80 | % |
Long-term corporate bonds | 5.85 | % |
Long-term government bonds | 4.50 | % |
Small-capitalization common stock | 13.15 | % |
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: | ?% |
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