An investor purchased a stock for $42.98 and sold it one year later for $46.17. The...

An investor purchased a stock for $42.98 and sold it one year later for $46.17. The investor also received a dividend payment of $0.13. What was the investor's realized capital gain rate? (Enter your answer as a decimal rounded to 4 decimal places, not a percentage. For example, enter .0153 instead of 1.53%.)

Hint:

Realized capital gain:

P1/P0-1

Expert Solution

Realized capital gain = (seliing price + dividend - purchase price)/purchase price

= (46.17 + .13 - 42.98)/42.98

= .0773

jeff jeffy answered 2 years ago

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