Problem: You are given the following long-run annual rates of return for alternative investments:
| U.S. Gov't T-bills |
3.75% |
| Large-cap common stock |
12.45% |
| Long-term corporate bonds |
6.15% |
| Long-term Gov't bonds |
5.15% |
| Small-capitalization common stock |
14.20% |
The annual rate of inflation is 3.5%. What is the real rate of return.
The annual rate of inflation is 3.5% what is the rate of return.