Compute the rate of return for an investor who pays $10 for a stock and sells...

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Compute the rate of return for an investor who pays $10 for a stock and sells...

Compute the rate of return for an investor who pays $10 for a stock and sells the stock one year later for $12. The investor also receives a dividend of $1.31. Write your answer as a decimal.

business finance

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Answer 1

Answer #1

Rate of return=(End value-Beginning value+Dividend)/Beginning value

=(12-10+1.31)/10

which is equal to

=0.331

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Answer 2

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