Approximate real rate of return on investment


Last year, you purchased a stock at a price of $51.5 a share. Over the course of the year, you received $2 in dividends and inflation averaged 2.7 percent. Today, you sold your shares for $54.2 a share. What is your approximate real rate of return on this investment (note: normally you would use the "Fisher Effect Formula", but in this case please use the "approximation formula"?

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Finance Basics: Approximate real rate of return on investment
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