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1. The first column of the following table describes the price movement of AOL Corporation stock over a five-year period. The second column gives the
1. The first column of the following table describes the price movement of AOL Corporation stock over a five-year period. The second column gives the period's consumer price index. Calculate the real value of the stock for each time period using year 5 as the base year. If you purchased $1,000 worth of AOL Corporation in year 1, what has happened to the purchasing power of your original $1,000 investment when you sell the stock in year 5? Year 1996 1997 1998 AOL $4.00 $3.84 $7.00 00 $70.00 CPI 147.8 155.3 163.0 165.4 172.1 1999 2000
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