Refer to Table 124 below What was the average annual return

Refer to Table 12.4 below.

What was the average annual return on Canadian stock from 1957 through 2014 in nominal terms? (Round the final answer to 2 decimal places.)

What was the average annual return on Canadian stock from 1957 through 2014 in real terms? (Round the final answer to 2 decimal places.)

Solution

a. average annual return on Canadian stock = 10.30%

b. average annual real return = 10.30% - 3.82% = 6.48%