if you are long the stock market what is your average return / yr

Quote from steve3052:

Add and compound the dividends, but subtract inflation.

After you back inflation out, at an average of approximately 3% per year, I believe the real return still comes out to be somewhere between 6 and 7%.

You can't back out a fixed component, only a variable component. Reason being that inflation is a non sequitor as you pay that no matter where your money is whether it's under your mattress, in a savings account, a treasury bond or invested in a restaraunt.
 
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