Last year, you purchased a stock at a price of $53 a share. Over the course of the year, you received $2.2 in dividends and inflation averaged 2.9 percent. Today, you sold your shares for $53.9 a share. What is your approximate real rate of return on this investment (note: normally you would use the "Fisher Effect Formula", but in this case please use the "approximation formula"?

Multiple Choice

• 8.7 percent

• 5.8 percent

• 8.3 percent

• 2.9 percent

• 1.5 percent