Attempts Keep the Highest/2 4. Capital gains and losses An investment's capital gain or loss is an important component of its yield. Read each statement about capital gains and indicate whether it is true or false. Statement True False A capital gain increases an investor's yield. . . o O . A capital gain results when the security's ending (sale) price is less than the beginning (purchase) pnce. A capital gain is calculated as an asset's beginning (purchase) price minus its ending (sale) price. A bond that was purchased four years ago for $950 and sold yesterday for $1,125 is realizing a capital gain of $175. . . . Larry owns 200 shares of common stock of Hermes Shipping Co. The shares were purchased two years ago for $30.00 per share. Hermes pays an annual dividend of $4.00 per share, and the shares have a current market value of $40.00 per share. Given this information, what is Larry's two-year yield on his Hermes shares? O 60.00% 75.00 63.00% O 51.00% Grade It Now Save & Continue Continue without saving