You purchase 100 shares of stock for $40 a share. The stock pays a $4 per share dividend at year-end.

a.What is the rate of return on your investment if the end-of-year stock price is (i) $36; (ii) $40; (iii) $44?(Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.)

b.What is your real (inflation-adjusted) rate of return if the inflation rate is 8%?(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative amounts should be indicated by a minus sign.)