### Example:

### Equities' Reward in Different Countries

How have equities rewarded investors in different countries in the long run? To answer this question, we could examine the average annual returns directly. The worth of a nominal level of return depends on changes in the purchasing power of money, however, and internationally there have been a variety of experiences with price inflation. It is preferable, therefore, to compare the average real or inflation-adjusted returns earned by investors in different countries.

Dimson, Marsh, and Staunton (2011) presented authoritative evidence on asset returns in 19 countries for the 111 years 1900–2010.

Our calculator shows their findings for average inflation-adjusted returns. Summarize data using frequency distributions (when no. of intervals = 5) for the average real equity returns.

**Frequency Distribution**

**Source: Dimson, Marsh, and Staunton (2011), Table 1.**