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The following table contains prices and dividends for a stock. All prices are after the dividend has been paid. If you bought the stock on
The following table contains prices and dividends for a stock. All prices are after the dividend has been paid. If you bought the stock on January 1 and sold it on December 31, what is your realized return?
Price | Dividend | |
1-Jan | 9.98 | |
31-Mar | 10.98 | 0.23 |
30-Jun | 10.48 | 0.23 |
30-Sep | 11.08 | 0.23 |
31-Dec | 10.98 | 0.23 |
I got 19.2%. But I don't think I did the calculation correctly. Here is my work:
Return = ((.23*4) +(10.98-9.98))*365 / (9.98*365) |
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