Question

Suppose you invested $60 in the Ishares Dividend Stock Fund (DVY) a month ago. It paid a
dividend of $0.63 today and then you sold it for $65. What was your return on the investment?
A) 6.57%
B) 7.51%
C) 9.38%
D) 10.32%

Answer 1

Answer:

Return on investment will be 9.38 %

So option (c) will be correct option

Explanation:

We have given purchase price = $60

Dividend received = $0.63

Selling price = $65

We have to find the return on investment

We know that return on investment is given by

Return in investment $=\frac{selling\ price-purchase\ price+dividend\ received]}{purchase\ price}=\frac{65-60+0.63}{60}=0.0938=9.383$ %

So return on investment will be 9.38 %

So option (c) is the correct option