Today, you sold your Riot Blockchain, Inc stock (ticker: RIOT) for $54.2/share. Last year, you paid $50/share for that stock. During the year, RIOT paid you $1.4/share in dividends. If inflation averaged 2.9% during the year, your approximate real rate of return on the RIOT investment is:

Multiple Choice

• 13.7 percent

• 8.3 percent

• 11.2 percent

• 4.2 percent

• 14.1 percent

According to Investopedia, from 199x until 199y, big-company stocks earned a mean return of 12.39% whereas little-company stocks earned 17.29%. If the mean return on U.S. T-bills during this period was 2.54%, the risk premium on little-company stocks was

Multiple Choice

• 19.83%

• 11.80%

• 9.85%

• 14.75%

• 4.90%