An investor bought a stock for $17 (at t=0) and one year later it paid a $3 dividend (at t=1). Just after the dividend was paid, the stock price was $19 (at t=1). Inflation over the past year (from t=0 to t=1) was -2% pa (note the negative sign), given as an effective annual rate. Which of the following statements is NOT correct?

The stock investment produced a: Select one:

a. Nominal capital return of 11.764706% pa.

b. Nominal income return of 29.411765% pa.

c. Real capital return of 14.045618% pa.

d. Real income return of 18.007203% pa.

e. Real total return of 32.052821% pa.