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

You purchase 100 shares of stock for $50 a share. The stock pays a $2 per share dividend at year-end. What is the rate of return on your investment for the end-of-year stock prices listed below? What is your real (inflation-adjusted) rate of return? Assume an inflation rate of 3%

Rate of Return Real Rate of Return
a. $48 % %
b. $50 % %
c. $54 % %

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