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) The first column of the following table describes the price movement of AOL Corporation stock over a five-year period. The second column gives the period's consumer price index. Calculate the real

) The first column of the following table describes the price movement of AOL Corporation
stock over a five-year period. The second column gives the period's consumer price index.
Calculate the real value of the stock for each time period using year 5 as the base year. If
you purchased $1,000 worth of AOL Corporation in year 1, what has happened to the
purchasing power of your original $1,000 investment when you sell the stock in year 5?
Year AOL CPI
11
1996 $4.00 147.8
1997 $3.84 155.3
1998 $7.00 163.0
1999 $37.00 165.4
2000 $70.00 172.1
Year Real AOL Stock Price in 2000 Dollars
1996 $4.66
1997 $4.26
1998 $7.39
1999 $38.50
2000 $70.00 

Apr 13 2021 View more View Less

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