Four months ago, you purchased 1,500 shares of Lakeside Bank stock for $11.20 a share.

Four months ago, you purchased 1,500 shares of Lakeside Bank stock for $11.20 a share. You have received dividend payments equal to $0.25 a share. Today, you sold all of your shares for $8.60 a share. What is your total dollar return on this investment?    A.  -$3,900 B.  -$3,525 C.  -$3,150 D.  -$2,950 E.  -$2,875 Total dollar return = ($8.60 - $11.20 + $0.25) × 1,500 = -$3,525

64.

One year ago, you purchased 500 shares of Best Wings, Inc. stock at a price of $9.75 a share. The company pays an annual dividend of $0.10 per share. Today, you sold all of your shares for $15.60 a share. What is your total percentage return on this investment?    A.  38.46 percent B.  39.10 percent C.  39.72 percent D.  62.50 percent E.  61.03 percent Total percentage return = ($15.60 - $9.75 + $0.10)/$9.75 = 61.03 percent

65.

Last year, you purchased a stock at a price of $47.10 a share. Over the course of the year, you received $2.40 per share in dividends while inflation averaged 3.4 percent. Today, you sold your shares for $49.50 a share. What is your approximate real rate of return on this investment?    A.  6.30 percent B.  6.79 percent C.  7.18 percent D.  9.69 percent E.  10.19 percent Nominal return = ($49.50 - $47.10 + $2.40)/$47.10 = 10.19 percent Approximate real return = 0.1019 - 0.034 = 6.79 percent

66.

One year ago, you purchased 150 shares of a stock at a price of $54.18 a share. Today, you sold those shares for $40.25 a share. During the past year, you received total dividends of $182 while inflation averaged 4.2 percent. What is your approximate real rate of return on this investment?    A.  -24.20 percent B.  -27.67 percent C.  -20.00 percent D.  20.00 percent E.  24.20 percent Nominal return = [$40.25 - $54.18 + ($182/150)]/$54.18 = -0.2420 Approximate real return = -0.2420 - 0.042 = -28.40 percent