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Suppose that five years ago Seth Adams (a student in our class) bought a share of stock in Famous Brands (a South African fast food
Suppose that five years ago Seth Adams (a student in our class) bought a share of stock in Famous Brands (a South African fast food company) for 53.35 South African Rand. Today the stock price of Famous Brands is 133.34 Rand. Over the same time period, South African inflation was 5.7% per year.
(a) What would be his annual real rate of return?
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