1. At the beginning of the year, you buy a stock for $120. If during the year you receive a dividend of $2.50, and you sell the stock for $110 at the end of year.

a. Calculate the dividend yield.

b. Calculate the capital gains yield. (show your work)

c. Calculate your total rate of return from investing in the stock

Econ 2313 Review Assignment 9 1. At the beginning of the year, you buy a stock for $120. If during the year you receive a dividend of $2.50, and you sell the stock for $110 at the end of year. a. Calculate the dividend yield. (show your work) b. Calculate the capital gains yield. (show your work) c. Calculate your total rate of return from investing in the stock