An investor purchased a stock for $1.61 per share, held it for one year, and sold it for $3.03 a share. The stock did not pay a dividend. Inﬂation for that year was 3.2% and Treasury bills returned 3.7%.
What is the real rate of return on this investment?

Question

Quizplus · Accepted Answer

The Answer of An investor purchased a stock for $1.61 per share, held it for one year, and sold it for $3.03 a share. The stock did not pay a dividend. Inﬂation for that year was 3.2% and Treasury bills returned 3.7%.
What is the real rate of return on this investment?

An Investor Purchased a Stock for $1