Based on the period 1926-2016, the actual real return on large-company stocks has been around:
A) 9 percent.
B) 10 percent.
C) 6 percent.
D) 7 percent.
E) 8 percent.

Question

Quizplus · Accepted Answer

The actual real return on large-company stocks for the period 1926-2016 has been around 10 percent, but when adjusted for inflation, it averages to approximately 7 percent. However, the nominal return, before adjusting for inflation, is closer to 10 percent, which is what the question seems to be asking for.

Based on the Period 1926-2016, the Actual Real Return on Large-Company