What is the capital gains yield for the investment?

A) 8.5%
B) 10.0%
C) 11.5%
D) 13.0%
E) 15.0%
Answer: E, Response: CGY = ($23 - 20) / 20, or 3/20 = .15or 15%
17. What is the dividend yield for the investment?
A) 2.5%
B) 7.5%
C) 10.0%
D) 15.0%
Answer: C
Response: Dividend Yield is D1/P0 = $2 / 20 = .10

18. What is the total percentage return for the investment?

A) 5%
B) 10%
C) 15%
D) 20%
E) 25%
Answer: E, Response: R = [($23 - 20) / 20] + (2 / 20) = .25
Here, you made a total of $5 per share ($3 gain + $2 dividend) divided by your purchase price of
$20. 5/20 = 25%.