Suppose you invested $45 in TD Bank one month ago.It paid a dividend of $0.60,and you sold it right after the dividend was paid for $44.90.What was your dividend yield and capital gains yield on the investment?
A)1.3%,-0.2%
B)-0.2%,1.3%
C)1.3%,1.1%
D)1.1%,-0.2%
E)1.1%,0.2%

Question

Quizplus · Accepted Answer

The dividend yield is calculated as the dividend received divided by the initial investment, so $0.60 / $45 = 0.0133 or 1.3%. The capital gains yield is calculated as the change in price divided by the initial investment, so ($44.90 - $45) / $45 = -0.0022 or -0.2%.

Suppose You Invested $45 in TD Bank One Month Ago