At the end of each year for the next 8 years you will receive cash flows of $500. The initial investment is $2, 500. What rate of return are you expecting from this investment? a. 11.81% b. 10.27% c. 9.01% d. 8.28% e. 7.21% You presently own stock that you purchased one year ago. Your return on the stock for the past year was 20%. You calculate your real return on investment was 12.15%. The rate of inflation must have been. a. 3% b. 5% c. 7% d. 9% e. 11% You purchased a bond one year ago for $959.20 and just received the annual coupon of $70. You sell the bond today for $950. What is your real return if inflation was 4%? a. 2.25% b. 2.75% c. 350% d. 4-17% e. 6.25% If investors require a 12% nominal return and the expected inflation rate is 4%, what is the expected real return? a. 4.04% b. 6.00% c. 7.69% d. 8.00% e. 10.52%