HomeworkLib
Question
Suppose you invested $100 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $2 today and then you sold
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Investment Value is $ 100; Dividend Received is $ 2; Hence Dividend Yield = 2 /100 = 2%

Investment Value is $ 100; Investment sold for $ 100; Capital Gains = $ 0;  Hence Capital Gain Yield = 0 /100 = 0%

Answer: (B) 2%, 0%

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose you invested $100 in the Ishares High Yield Fund (HYG) a month ago. It paid...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Suppose you invested 592 in the Ishares High Yield Fund (HYG) a month ago. It paid...

    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 sold it for $93. What was your dividend yield and capital gains yield on the investment? OA. 1.09%, 12% OB. 0.53%, 1.14% OC. 0.55%, 1.09% OD. 0.55%, 1.14% Click to select your answer

  • Three years​ ago, you invested in the Future Investco Mutual Fund by purchasing 700 shares of...

    Three years​ ago, you invested in the Future Investco Mutual Fund by purchasing 700 shares of the fund at the price of $ 20.59 per share. Because you did not need the​ income, you elected to reinvest all dividends and capital gains distributions. ​ Today, you sell your 800 shares in this fund for ​$22.96 per share. If there were a 2.5​% load on this​ fund, what would your rate of return​ be?

  • The High Yield Money Market Fund returned 6.60 percent for the last year. Currently, 37) you...

    The High Yield Money Market Fund returned 6.60 percent for the last year. Currently, 37) you own 8,901.1 shares of this fund. If you invested in this fund one year ago, what was the amount of your original investment? A) $8,402.38 B) $8,682.51 C) $8,350.00 D) $9,650.03 E) $8,750.00

  • 8 years ago you purchased an asset for a $100000 that has yield a nominal capital...

    8 years ago you purchased an asset for a $100000 that has yield a nominal capital gain of $30000 if you sold the asset today you are inflation adjusted capital gains would be 0 due to inflation over the last 8 years the capital gains tax is 28% if you sold the asset today your tax liability would be?

  • You short-sell 100 shares of Tuckerton Trading Co., now selling for $20 per share. What is...

    You short-sell 100 shares of Tuckerton Trading Co., now selling for $20 per share. What is your maximum possible gain ignoring transactions cost? One year ago, you purchased 400 shares of stock for $12 a share. The stock pays $0.22 a share in dividends each year. Today, you sold your shares for $28.30 a share. What is your total dollar return (absolute return, that is, in dollars and cents) on this investment? One year ago, you bought a stock for...

  • One year ago, Stacey purchased 100 shares of KNF stock for $3,245. Today, she sold those...

    One year ago, Stacey purchased 100 shares of KNF stock for $3,245. Today, she sold those shares for $35.00 per share. What is the capital gains yield on this investment if the dividend yield is 1.4 percent? 7.11 percent 7.86 percent 5.96 percent −7.29 percent −7.86 percent

  • Make sure to show all work 1.Suppose you purchased a share of common stock $100. You...

    Make sure to show all work 1.Suppose you purchased a share of common stock $100. You received $5 and $5.50 in dividends for the first and second years of your investment period, and then sold the share at the end of the 2 years for $112. Calculate your annual compounded rate of return on this investment. 2.A share of common stock is expected to pay a dividend of $3.50 in the coming year. Its current price is $60. The company’s...

  • You invested $1,200,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the...

    You invested $1,200,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the fund has a high-water-mark provision. Suppose the first year the fund manager loses 8 percent, and the second year she gains 16 percent. Assume management fees are paid at the beginning of each year and performance fees are taken at the end of each year.              What are the management and performance fees paid each year? (Leave no cells blank - be certain to...

  • You bought a stock a year ago for $50 per share and sold it today for...

    You bought a stock a year ago for $50 per share and sold it today for $55. It paid a $1 dividend yesterday. 1. What was your realized return? 2. How much of the return came from the dividend yield and how much came from the capital gain? 3. The same scenario as above, but the stock fell to $45 per share. What is the dividend yield now? What is the capital gain now?

  • You invested $1,300,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the...

    You invested $1,300,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the fund has a high-water-mark provision. Suppose the first year the fund manager loses 5 percent and the second year she gains 17 percent. Assume management fees are paid at the beginning of each year and performance fees are taken at the end of each year. What are the management and performance fees paid each year? (Leave no cells blank - be certain to enter...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT