You are given the following long-run annual rates of return for alternative investment instruments:
|U.S. Government T-bills||3.50%|
|Large-cap common stock||11.75|
|Long-term corporate bonds||5.50|
|Long-term government bonds||4.90|
|Small-capitalization common stock||13.10|
The annual rate of inflation during this period was 3 percent. Compute the real rate of return on these investment alternatives.