Assume That Large-Company Stocks Had an Average Rate of Return

question 84

Multiple Choice

Assume that large-company stocks had an average rate of return of 12.1 percent over the past 88 years while T-bills returned an average of 3.5 percent and inflation averaged 3.0 percent.Given this,the real return on large-company stocks was:

• A)6.67 percent
• B)5.60 percent
• C)8.83 percent
• D)7.94 percent
• E)9.10 percent

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