A year ago, you purchased 300 common stock for $41.42 per share. The stock issued an annual cash dividend of $1.14 per share. If the current stock price is $40.12 and inflation has been 1.5% during the past year, calculate the investments real rate of return using the exact formula.

Select one:

a. (2.94%)

b. (1.86%)

c. (2.19%)

d. (3.72%)

e. (3.53%)