Consider the following information on large-company stocks for a period of years. Large-company stocks Inflation Arithmetic Mean 14.7% 4.6 a. What was the arithmetic average annual return on large-company stocks in nominal terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the arithmetic average annual return on large-company stocks in real terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Nominal return b. Real return % %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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es
Consider the following information on
large-company stocks for a period of
years.
Large-company stocks
Inflation
Arithmetic
Mean
14.7%
4.6
a. What was the arithmetic average
annual return on large-company
stocks in nominal terms?
Note: Do not round intermediate
calculations and enter your answer
as a percent rounded to 2 decimal
places, e.g., 32.16.
b. What was the arithmetic average
annual return on large-company
stocks in real terms?
Note: Do not round intermediate
calculations and enter your answer
as a percent rounded to 2 decimal
places, e.g., 32.16.
a. Nominal return
b. Real return
%
%
Transcribed Image Text:es Consider the following information on large-company stocks for a period of years. Large-company stocks Inflation Arithmetic Mean 14.7% 4.6 a. What was the arithmetic average annual return on large-company stocks in nominal terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the arithmetic average annual return on large-company stocks in real terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Nominal return b. Real return % %
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