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Question 6
1 pts
Breanne paid $11.75 a share for stock Y last year. Today, she sold the stock for
$14.25 a share. What was her percentage return, not counting commission?
(Leave answer as a decimal)
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Respuesta :

Answer:

Percentage return is 21.28%

Explanation:

The percentage on the share investment is the difference between the today's price of the share and the initial price last year divided by the initial price.

This is known as capital gains yield which is the return due to changes in prices of the stock rather the return due to receiving dividends on the stock i.e dividends yield

capital gains yield =($14.25-$11.75)/$11.75

                               =$2.5/$11.75

                                =21.28%

The return could have been much more higher if the dividend received on the share was provided since the total return is the sum of both dividend and capital gains yield

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