What was the arithmetic average annual return on


Consider the following information on large-company stocks for a period of years. Series Arithmetic Mean Large-company stocks 14.9 % Inflation 4.8.

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

Real return             %

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Financial Management: What was the arithmetic average annual return on
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