Consider the following information on large-company stocks for a period of years. Large-company stocks Inflation Arithmetic Mean a. Nominal return b. Real return a. What was the arithmetic average annual return on large-company stocks in nominal terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the arithmetic average annual return on large-company stocks in real terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 14.38 4.2 % %

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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Consider the following information on large-company stocks for a period of years.
Large-company stocks
Inflation
Arithmetic
Mean
a. Nominal return
b. Real return
a. What was the arithmetic average annual return on large-company stocks in nominal terms?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
b. What was the arithmetic average annual return on large-company stocks in real terms?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
14.3%
4.2
%
%
Transcribed Image Text:Consider the following information on large-company stocks for a period of years. Large-company stocks Inflation Arithmetic Mean a. Nominal return b. Real return a. What was the arithmetic average annual return on large-company stocks in nominal terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the arithmetic average annual return on large-company stocks in real terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 14.3% 4.2 % %
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