Question 28

Over the past 4 years, large-company stocks and U.S. Treasury bills have produced the returns stated below. During this period, inflation averaged 1.5 percent. Given this information, the average real rate of return on large-company stocks was ___ percent as compared to _____ percent for Treasury bills.

	Year 1	Year 2	Year 3	Year 4
Return (Large Cap Stocks)	12%	9%	6%	3%
Return (U.S. Tsy-bills)	4%	2%	1%	1%

Group of answer choices

5.9; -0.5

6.5; -0.5

5.9; 0.5

6.5; 0.5

6.5; 0.0