Suppose you invested $60 in the Ishares Dividend Stock Fund (DVY)a month ago.It paid a dividend of $0.70 today and then you sold it for $65.What was your return on the investment?
A)8.25%
B)9.00%
C)9.50%
D)9.75%
E)10.00%

Question

Quizplus · Accepted Answer

To calculate the return on investment, we need to add the dividend received to the selling price and then subtract the initial investment.

Dividend received = $0.70 
Selling price = $65

Total proceeds = $65 + $0.70 = $65.70

Initial investment = $60

Return on investment = (Total proceeds - Initial investment)/Initial investment * 100% 
= ($65.70 - $60)/$60 * 100% 
= 9.50%

Therefore, the answer is choice C, 9.50%.

Suppose You Invested $60 in the Ishares Dividend Stock Fund