Over the past four years the annual percentage returns on


Over the past four years, the annual percentage returns on the large-company stocks were 15, 7, 4, and 18%. For the same time period, US Treasury bills produced the returns of 6, 3, 2, and 4 percent. Inflation averages 2.8 percent over the four-year period. The average real rate of return on large-company stocks was __ percent as compared to ___ percent for Treasury Bills.

A 7.98;1.22

B 6.47; .92

C 7.98; 1.08

D 6.47; 1.08

E 7.98; .92

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Financial Management: Over the past four years the annual percentage returns on
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