Over the past four years,large-company stocks and U.S.Treasury bills have produced the returns stated below.During this period,inflation averaged 2.8 percent.Given this information,the average real rate of return on large-company stocks was ___ percent as compared to _____ percent for Treasury bills.

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Large-company stocks:Average nominal return = (0.15 + 0.07 + 0.04 + 0.18)/4 = 0.11Average real rate: r = (1.11/1.028) - 1 = 7.98 percentU.S. Treasury bills:Average nominal return = (0.06 + 0.03 + 0.02 + 0.04)/4 = 0.0375Average real rate: r = (1.0375/1.028) - 1 = 0.92 percent

Over the Past Four Years,large-Company Stocks and U