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Last year, you purchased a stock at a price of $53 a share. Over the course of the year, you received $1.6 in dividends and

Last year, you purchased a stock at a price of $53 a share. Over the course of the year, you received $1.6 in dividends and inflation averaged 2.8 percent. Today, you sold your shares for $53.9 a share. What is your approximate real rate of return on this investment? A) 1.0 percent B) 7.2 percent C) 1.9 percent D) 4.7 percent E) 7.5 percent Part 2 A stock has returns of 2 percent, 19 percent, -24 percent, and 17 percent for the past 4 years. Based on this information, what is the 95 percent probability range for any one given year? A) -8.6 to 12.1 percent B) -56.0 to 63.0 percent C) -25.0 to 35.3 percent D) -36.2 to 43.2 percent E) -16.3 to 23.3 percent Part 3 One year ago, you purchased a stock at a price of $32 a share. Today, you sold the stock and realized a total return of 25%. Your capital gain was $6 a share. What was your dividend yield on this stock? A) 21.25% B) 18.75% C) 1.25% D) 6.25% E) 3.75%

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