Consider the following information on large-company stocks for a period of years. ...

60.1K

Verified Solution

Question

Accounting

Consider the following information on large-company stocks for a period of years.

Series

Arithmetic Mean

Large-company stocks 12.9 %
Small-company stocks 16.4
Long-term corporate bonds 6.2
Long-term government bonds 6.1
Intermediate-term government bonds 5.6
U.S. Treasury bills 3.8
Inflation 3.4
Required:
(a)

What was the arithmetic average annual return on large-company stocks in nominal terms? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Nominal return %
(b)

What was the arithmetic average annual return on large-company stocks in real terms? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Real return %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students