Computation of real rate of return

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.

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