CH5.4.

An investments 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 is calculated as an assets ending (sale) price minus its beginning (purchase) price.
A negative capital gain, also called a capital loss, results when the value of an investment increases over the period it is held.
A bond that was purchased five years ago for $1,125 and sold yesterday for $890 is generating a capital gain of $235.
A capital gain is a positive change in the assets price over a given period of time.

Crystal owns 200 shares of common stock of Minerva Manufacturing Co.. The shares were purchased two years ago for $60.00 per share. Minerva pays an annual dividend of $4.00 per share, and the shares have a current market value of $20.00 per share.

Given this information, what is Crystals two-year yield on her Minerva shares?

-45.33%

-56.00%

-66.66%

-53.33%