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o HW Score: 60%, 3 of 5 pts Concept Question 4.4 Question Help At the beginning of the year, you bought 100 shares of IBM com
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Answer #1

Total investment on 100 shares = $95

Total return = dividend + selling price = $4*100 + $100 = $500.

So, nominal return = ($500 - $95)/95*100 = 405/95 * 100 = 4.2631 * 100 = 426.31%

Real return = nominal return - inflation = 426.31% - 5% = 421.31%

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