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2) You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. What is the rate

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2) You purchase 100 shares of stock for $40 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 around $42? What is your real rate of return if the inflation rate is 4%

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