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You are given the following long-run annual rates of return for alternative investment instruments: U.S. Government T-bills 3.80% 11.10 5.00 Large-cap common stock Long-term corporate
You are given the following long-run annual rates of return for alternative investment instruments: U.S. Government T-bills 3.80% 11.10 5.00 Large-cap common stock Long-term corporate bonds Long-term government bonds Small-capitalization common stock 5.00 12.85 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: % % %
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