Question

Suppose you invested 592 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of 50.51 today and then you sol
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Answer #1

Solution :-

Purchase value of Share = $92

Dividend received at the end = $0.51

Closing Value / Sales Price of Share = $93

Now Dividend yield = Dividend / Purchase price = $0.51 / $92 = 0.0055 = 0.55%

Capital gain yield = (Sale value - Purchase value) / Purchase value = ( $93 - $92 ) / $92 =

= $1 / $92 = 0.0109 = 1.09%

Therefore correct answer is (C)

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