An investor purchased a stock for $21.36 and sold it one year later for $28.99. The...

An investor purchased a stock for $21.36 and sold it one year later for $28.99. The investor also received a dividend payment of $0.84. What was the investor's realized return? (Enter your answer as a decimal rounded to 4 decimal places, not a percentage. For example, enter .0153 instead of 1.53%.)

Expert Solution

Realized return = (Sale price - Purchase price) + Dividend / Purchase price

Putting the given values in the above formula, we get,

Realized return = ($28.99 - $21.36) + $0.84 / $21.36

Realized return = $7.63 + $0.84 / $21.36

Realized return = $8.47 / $21.36 = 0.3965

jeff jeffy answered 2 years ago

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