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4. Rate of return (yield) The rate of return, or yield, is the total return on an investment expressed as a percentage of its purchase

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4. Rate of return (yield) The rate of return, or yield, is the total return on an investment expressed as a percentage of its purchase price. The rate of return is usually stated on an annualized basis. For example, if you have an investment worth $1,000 that yields $120 of total return per year, then the investment would have a 12% annual rate of return (or yield). Consider the following example: Dulia has purchased 100 shares of Z&F Corporation stock at a purchase price of $40 per share. Over the next year, 28F Corporation pays a total of $6 per share in dividends to its shareholders. At the end of the year, Julla sells her zBf Corporation stock for $S3 per share. In addition, Julia paid a transaction cost of $1 per share both at the time of purchase and at the time of sale. Part A-Current Income (Dividends): Over the year that Julia owns her shares of z&F Corporation stock, she receives a total of $ in current income in the form of dividends. Part 8 Capital Gains: The total amount that Julia has paid for her z&F Corporation stock is $ The total amount of money that Julia receives after selling her shares of Z&F Corporation stock is $ Therefore, Julia's investment achieves a capital gain of Part C-Total Return: Over the year that she owns the Z&F Corporation stock, Julia earns a total return of $ Part D-Rate of Return (Yield): The rate of return on an investment is the total retum on the investment expressed as a percentage of its price. Calculate the rate of return by dividing the total return by the total purchase price (not including transaction costs because these are already taken into account in the capital gains portion of the total return). Round your rate of return to two decimal places. In the example given the total return is $ J, and the total purchase price (excluding transaction costs) is $ tate of return on Julia's investment in Z&F Corporation stock is % Therefore, the

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