You purchase 100 shares of stock for $50 a share. The stock pays a $2 per share dividend at year-end.

1. What is the rate of return on your investment if the end-of-year stock price is (i) $48; (ii) $50; (iii) $54?
2. What is your real (inflation-adjusted) rate of return if the inflation rate is 3%?

Complete this question by entering your answers in the tabs below.

• Required A
• Required B

What is the rate of return on your investment if the end-of-year stock price is (i) $48; (ii) $50; (iii) $54?

Note: Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.

Stock Price	Rate of Return
48		%
50		%
54		%

What is your real (inflation-adjusted) rate of return if the inflation rate is 3%?

Note: 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.

Stock Price	Real Rate of Return
48		%
50		%
54		%