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08-11-2022
Business

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problem 11-8 real versus nominal returns (lo2) you purchase 100 shares of stock for $50 a share. the stock pays a $3 per share dividend at year-end. what is the rate of return on your investment if the end-of-year stock price is (i) $47; (ii) $50; (iii) $55? what is your real (inflation-adjusted) rate of return if the inflation rate is 5%?

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