US T-bills (Rf asset) CPI Year Large Stocks LT Gov Bonds (inflation) 2016 12.95% 2.35% 0.20% 1.90% 2017 18.63% 5.75% 0.60% 1.80% 2018 -5.28% -1.25% 0.80% 2.10% 2019 25.45% 3.35% 1.20% 1.10% 2020 19.12% 9.30% 1.50% 2.10% culate the average nominal return earned on large-company stocks. (Enter percentages as decimals an imals)

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 21RQ: Name several forms of indexing in the private and public sector.
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The following return series comes from Global Financial Data.
US T-bills
(Rf asset)
CPI
Year
Large Stocks
LT Gov Bonds
(inflation)
2016
12.95%
2.35%
0.20%
1.90%
2017
18.63%
5.75%
0.60%
1.80%
2018
-5.28%
-1.25%
0.80%
2.10%
2019
25.45%
3.35%
1.20%
1.10%
2020
19.12%
9.30%
1.50%
2.10%
Calculate the average nominal return earned on large-company stocks. (Enter percentages as decimals and round to 4
decimals)
Transcribed Image Text:The following return series comes from Global Financial Data. US T-bills (Rf asset) CPI Year Large Stocks LT Gov Bonds (inflation) 2016 12.95% 2.35% 0.20% 1.90% 2017 18.63% 5.75% 0.60% 1.80% 2018 -5.28% -1.25% 0.80% 2.10% 2019 25.45% 3.35% 1.20% 1.10% 2020 19.12% 9.30% 1.50% 2.10% Calculate the average nominal return earned on large-company stocks. (Enter percentages as decimals and round to 4 decimals)
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