Consider the following information Nominal annual return o…
Consider the following information Nominal annual return on U.S. government T-bills for year 2018 = 3.5% Nominal annual return on U.S. government long-term bonds for year 2018 = 4.75% Nominal annual return on U.S. large-cap stocks for year 2018 = 8.75% Consumer price index January 1, 2018 = 165 Consumer price index December 31, 2018 = 169 Compute the rate of inflation for the year 2018.