What is your total real return on this investment

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Reference no: EM13928019

Mountain Minerals pays a constant annual dividend. One year ago, when you purchased shares of that stock at $40 a share, the dividend yield was 6.5 percent. Over this past year, the inflation rate has been 3.2 percent. Today, the required return on this stock is 9.8 percent and you just sold all of your shares. What is your total real return on this investment?

A. -31.87 percent

B. -29.43 percent

C. -26.67 percent

D. -25.48 percent

E. -23.09 percent

Reference no: EM13928019

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