What was her approximate real rate of return on investment

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Reference no: EM13915256

1. Christina purchased 200 shares of stock at a price of $62.30 a share and sold them for $70.25 a share. She also received $148 in dividends. If the inflation rate was 4.2 percent, What was her approximate real rate of return on this investment?

24.20 percent

9.75 percent

18.15 percent

13.95 percent

14.20 percent

2. Over a 30-year period an asset had an arithmetic return of 13 percent and a geometric return of 10.5 percent. Using Blume's formula, what is your best estimate of the future annual returns over the next 10 years?

11.18 percent

12.04 percent

11.84 percent

12.22 percent

12.46 percent

Reference no: EM13915256

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