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You bought a stock one year ago for $51.85 per share and sold it today for $45.0

ID: 2801469 • Letter: Y

Question

You bought a stock one year ago for $51.85 per share and sold it today for $45.08 per share. It paid a $1.28 per share dividend today.

a. What was your realized return? ____%

b. How much of the return came from dividend yield and how much came from capital gain?

a. What was your realized return? ____%

The realized return was __%.

(Round to two decimal places.)

b. How much of the return came from dividend yield and how much came from capital gain?

The return that came from dividend yield is

nothing %.

(Round to two decimal places.)The return that came from capital gain is

nothing %.

(Round to two decimal places.)

Explanation / Answer

Realized return=(End price-Beginning price+dividends)/Beginning price

=(45.08-51.85+1.28)/51.85=(10.59%)(Negative)

Dividend yield=Dividend/Beginning price

=(1.28/51.85)=2.47%(Approx)

Capital gains yield=(End price-Beginning price)/Beginning price

=(45.08-51.85)/51.85=(13.06%)(Negative).

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