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Viktor [21]
4 years ago
15

Suppose you invested $59 in the Ishares Dividend Stock Fund (DVY) a month ago. It paid a

Business
1 answer:
umka2103 [35]4 years ago
7 0

Answer:

C) 12.51%

Explanation:

Initial stock price = $59

Selling price = $66

Dividends paid = $0.38

The total return on the investment is the the sum of the dividend yield and the capital  gains yield on the investment:

R= DY +CGY\\R=\frac{dividends}{initial\ price}+ \frac{final\ price-initial\ price}{initial\ price} \\R=\frac{0.38}{59}+ \frac{66-59}{59}\\R=0.1251 = 12.51\%

The return on the investment is 12.51%

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<h3>How to illustrate the information?</h3>

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