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TABLE 12.2 Average Annual Returns: 1926-2019 Investment Average Return 12.1% 16.3 Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds U.S. Treasury bills 6.4

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TABLE 12.2 Average Annual Returns: 1926-2019 Investment Average Return 12.1% 16.3 Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds U.S. Treasury bills 6.4 6.0 3.4 Inflation 2.9 Source: 2020 SBBI Yearbook. Duff & Phelps. Refer to Table 12.2. a. What is the historical real return on long-term government bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the historical real return on long-term corporate bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Government bonds % b. Corporate bonds %

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