Suppose you invested $100 in the Ishares High Yield Fund (HYG)a month ago.It paid a dividend of $1 today and then you sold it for $100.What was your dividend yield and capital gains yield on the investment?

Question

Quizplus · Accepted Answer

The dividend yield is calculated as the dividend received divided by the initial investment, which is $1/$100 = 1%. The capital gains yield is calculated as the change in price divided by the initial investment, which is ($100 - $100)/$100 = 0%.

Suppose You Invested $100 in the Ishares High Yield Fund