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An investor buys some shares of ABC for $20 at the beginning of the year. During...

An investor buys some shares of ABC for $20 at the beginning of the year. During the year he receives $0.50 in dividends, and then sells the shares for $21 at the end of the year. What is the total return on this investment?

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Expert Solution

Total return on investment=(Selling price + Dividend -Buying price)/ buying price)*100

= ((21+.5-20)/20)*100

= (1.5/20)*100

= 7.5%

Overall return which has been made by investor is 7.5 %.

jeff jeffy answered 3 years ago
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