Last year, you purchased a stock at a price of $74.00 a share. Over the course of the year, you received $2.10 per share in dividends and inflation averaged 2:6 percent. Today, you sold your shares for $77.70 a share. What is your approximate real rate of return on this investment?
Last year, you purchased a stock at a price of $74.00 a share. Over the course of the year, you received $2.10 per share in dividends and inflation averaged 2:6 percent. Today, you sold your shares for $77.70 a share. What is your approximate real rate of return on this investment?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:MC algo 10-3 Approximate Real Return
Last year, you purchased a stock at a price of $74.00 a share. Over the course of the year, you received $2.10 per share in dividends and inflation
averaged 26 percent. Today, you sold your shares for $77.70 a share. What is your approximate real rate of return on this investment?
Multiple Choice.
O
10.4%
2.4%
7.6%
7.8%

Transcribed Image Text:Multiple Choice
O
O
10.4%
2.4%
7.6%
7.8%
5.2%
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