Last year, you purchased a stock at a price of $73.56 a shar…

Last year, you purchased a stock at a price of $73.56 a share. Over the course of the year, you received $1.89 per share in dividends and inflation averaged 2.10 percent. Today, you sold your shares for $88.69 a share. What is your approximate real rate of return on this investment?

Over the past 37 years, the common stock of The Flower Shopp…

Over the past 37 years, the common stock of The Flower Shoppe has produced an arithmetic average return of 13.91% percent and a geometric average return of 8.56% percent. What is the projected return on this stock for the next 5 years according to Blume’s formula?