Question

You put up $60 at the beginning of the year for an investment. The value of the investment grows TO $62.4 and you earn a dividend of $3.50. Your HPR was ____, capital gains yield was ____ and dividend yield was _____.

A. 1.83%, 1%, 0.83%

B. 5.83%, 4%, 1.83%

C. 4%, 3%, 1%

D. 9.83%, 4%, 5.83%

Answer 1

Ans D. 9.83%, 4%, 5.83%

HPR	Total Return on Shares =	Dividend Income + (P1 - P0)
		3.50 + (62.4 - 60)
		5.90
	Return on Shares in % =	Return on Share / P0 * 100
		5.90 / 60 * 100
		9.83%
	CAPITAL GAIN YIELD =	(P1 - P0)/ P0 * 100
		(62.4 - 60) / 60 * 100
		4.00%
	DIVIDEND YIELD =	Dividend Income/ P0 * 100
		3.50 / 60 * 100
		5.83%