Last Year,you Purchased a Stock at a Price of $47

Multiple Choice

Last year,you purchased a stock at a price of $47.10 a share.Over the course of the year,you received $2.40 per share in dividends while inflation averaged 3.4 percent.Today,you sold your shares for $49.50 a share.What is your approximate real rate of return on this investment?

A) 6.30 percent
B) 6.79 percent
C) 7.18 percent
D) 9.69 percent
E) 10.19 percent