Question 4: What is the real, or after-inflation, return from each of the asset classes listed in Table 12.4?

Table 12.4: Average Annual Return: Treasury Bills 3.58%, Treasury Bonds 5.23%, Common Stocks 11.37%, Inflation Rate 3.07%

Standard Deviation: Treasury Bills 3.11%, Treasury Bonds 7.79%, Common Stocks 19.83%, Inflation Rate 3.88%