Posted by **Antoinette** on Wednesday, March 21, 2007 at 2:12am.

You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. What is the rate of return on your investment for these end-of-year stock prices? What is your real (inflation-adjusted) rated of return? Assume an inflation rate of 4 percent.

a. $38

b. $40

c. $42

- Real reverse Nominal Returns -
**5yrhr**, Thursday, February 14, 2013 at 10:04pm
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