Constructing a Frequency Distribution.How have equities rewarded investors in di

Constructing a Frequency Distribution.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 (2002) presented authoritative evidence on asset returns in 16 countries for the 101 years 1900-2000. Table excerpts their findings for average inflation adjusted returns.Real (Inflation-Adjusted) EquityReturns: Sixteen Major EquityMarkets 1900-2000CountryArithmetic MeanAustralia9.0%Belgium4.8%Canada7.7%Denmark6.2%France6.3%Germany8.8%Ireland7.0%Italy6.8%Japan9.3%Netherlands7.7%South Africa9.1%Spain5.8%Sweden9.9%Switzerland6.9%United Kingdom7.6%United States8.7%Table summarizes the data in Table into six intervals spanning 4 percent to 10 percentFrequency Distribution of Average Real Equity ReturnsCumulativeCumulativeReturnAbsoluteRelativeAbsoluteRelativeIntervalFrequencyFrequencyFrequencyFrequency4.0% to 5.0%16.25%16.25%5.0% to 6.0%16.25%212.50%6.0% to 7.0%425.00%637.50%7.0% to 8.0%425.00%1062.50%8.0% to 9.0%212.50%1275.00%9.0% to 10%425.00%16100.00%