Given:

Composite Index (CI) = 740.00 Dividend yield (CI) = 1%

r =5%

1st case: The Investor decides to buy a portfolio of stocks as an Index Fund for a 3-Month holding period.

Assuming: Index is Unchanged

Initial cost of stocks (5,000,000)

Sales of stocks +5,000,000

Profit from stocks 0

Dividend income +12500

Total profit +12500

May i ask where to get the amount of 12500?