For Problems 20–22, download the Spreadsheet containing the data for Table 5.2: Rate...

For Problems 20–22, download the Spreadsheet containing the data for Table 5.2: Rates of return, 1926–2008, from www.mhhe.com/bkm .

Repeat the previous problem for small stocks and compare with the results for nominal rates.

Previous problem-21

Convert the nominal returns on both large and small stocks to real rates. Reproduce Table 5.5 using real rates instead of excess returns. Compare the results to those of Table 5.5.