Questions:

1.) Assuming you purchased a share of stock for $50 one year ago, sold it today for $60, and during the year received three dividend payments totaling $2.70, calculate the following. a.) Income b.) Capital gain (or loss) c.) Total return in: 1.) In dollars & 2.) As a percentage of the initial investment

2.) Given a real rate of interest of 2%, an expected inflation premium of 3%, and risk premiums for investments A and B of 4% and 6%, respectively, find the following: a.) The risk-free rate of return, rf b.) The required returns for investments A and B