What is the rate of return on your investment

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Reference no: EM132961977

Problem - You purchase 100 shares of stock for $50 a share. The stock pays a $2 per share dividend at year-end.

What is the rate of return on your investment if the end-of-year stock price is (i) $48; (ii) $50; (iii) $52?

What is your real (inflation-adjusted) rate of return if the inflation rate is 3%?

Reference no: EM132961977

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