You purchased a stock a year ago for $65 per share and received a dividend of $1.25 per share. If you sold the stock today for $69.75, then what is your one-year return?
A)7.3%
B)9.2%
C)1.9%
D)8.6%

Question

You purchased a stock a year ago for $65 per share and received a dividend of $1.25 per share.   If you sold the stock today for $69.75, then what is your one-year return?
A)​7.3%
B)​9.2%
C)​1.9%
D)​8.6%

Quizplus · Accepted Answer

The one-year return is calculated as follows:
- Gain from price appreciation: $69.75 - $65 = $4.75
- Gain from dividends: $1.25
- Total gain: $4.75 + $1.25 = $6.00

The initial investment was $65 per share, so the percentage return is:

$6.00 / $65 = 0.0923 or 9.23%

Rounding to one decimal place, the answer is 9.2%, which corresponds to choice B.

You Purchased a Stock a Year Ago for $65 Per