Leo Purchased a Stock for $63

Multiple Choice

Leo purchased a stock for $63.80 a share, received a dividend of $2.68 a share and sold the shares for $59.74 each. During the time he owned the stock, inflation averaged 2.8 percent. What is his approximate real rate of return on this investment?

A) −.64 percent
B) −4.96 percent
C) −2.16 percent
D) 2.16 percent
E) 4.96 percent