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You are given the following long-run annual rates of return for alternative investment instruments: U.S. Government T-bills 3.15 % Large-cap common stock 11.70 % Long-term
You are given the following long-run annual rates of return for alternative investment instruments:
U.S. Government T-bills | 3.15 | % |
Large-cap common stock | 11.70 | % |
Long-term corporate bonds | 5.10 | % |
Long-term government bonds | 4.65 | % |
Small-capitalization common stock | 12.60 | % |
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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