Question

Consider the following information on large-company stocks for a period of years. Arithmetic Mean Large-company stocks 15.3 % Inflation 3.5 a. What was the arithmetic average annual return on large-company stocks in nominal terms

Answer 1

the arithmetic average annual return on the large company stocks in terms of nominal terms is 15.3%

Step-by-step explanation:

The computation of the arithmetic average annual return on the large company stocks in terms of nominal terms is shown below:

= Arithmetic mean of large company stocks

= 15.3%

hence, the arithmetic average annual return on the large company stocks in terms of nominal terms is 15.3%

The same is to be considered