One Year Ago, Valerie Purchased a Stock at a Price

One year ago, Valerie purchased a stock at a price of $26 a share. Today, she sold those shares for $26.50 a share. During the past year, she received dividends totaling $0.50 a share while inflation
Averaged 2.8%. What is Valerie's real rate of return on this investment?

A) 1.02%
B) 1.49%
C) 2.67%
D) 3.40%
E) 3.85%