Consider the following information on different asset classes from 1926 through 2011. ...
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Accounting
| Consider the following information on different asset classes from 1926 through 2011. |
| Series | Arithmetic Mean | |
| Large-company stocks | 11.8 | % |
| Small-company stocks | 16.5 | |
| Long-term corporate bonds | 6.4 | |
| Long-term government bonds | 6.1 | |
| Intermediate-term government bonds | 5.5 | |
| U.S. Treasury bills | 3.6 | |
| Inflation | 3.1 | |
| Required: |
| What was the arithmetic average annual return on large-company stocks in real terms? Use the Fisher equation (1+R)/(1+h) - 1. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) What is the Real Return? ________% |
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