8. If you buy First Solar stock for $230 per share and sell it for $265 per share after one year, what is your total rate of return? What is your answer if you also receive a dividend of $10 per year?

9. If the real rate of interest expected on a certain loan is equal to 4.25% and expected inflation is 2%, what nominal rate of interest should be charged on the loan?

10. Why might the real interest rate differ from the expected interest rate? Would this difference matter more to you if you were making a 1 year loan or a 10 year loan? Why or why not?