Marti purchased a stock one year ago at a price of $23.89. Over the past year she has received a total of $1.63 in dividends. Today she sold the stock for $22.84. What percentage total return did Marti earn on this investment?

Question

Quizplus · Accepted Answer

The total return is calculated by adding the dividends received to the gain (or loss) on the stock and then dividing by the purchase price. Marti's total return = (($22.84 - $23.89) + $1.63) / $23.89 = ($-1.05 + $1.63) / $23.89 = $0.58 / $23.89 = 0.0243 or 2.43%.

Marti Purchased a Stock One Year Ago at a Price