Question

One year ago, you purchased 600 shares of a stock. This morning you sold those shares and realized a total return of 3.1 percent. Given this information, you know for sure the:
A. stock price increased by 3.1 percent over the last year.
B. stock increased in value over the past year.
C. stock paid a dividend.
D. dividend yield is greater than zero.
E. sum of the dividend yield and the capital gains yield is 3.1 percent.

Answer 1

Answer:

E. sum of the dividend yield and the capital gains yield is 3.1 percent.

Explanation:

According to the scenario, computation of the given data are as follow:-

As we know that ,

Total Return Price = (Dividend ÷ Beginning year price) + Ending year price - Beginning  year price

= Dividend Yield + Capital Gains Yield

So according to the analysis, option(E) sum of the dividends yield and the capital gains is 3.1 percent is correct.