Suppose you invested $93 in the Ishares High Yield Fund (HYG) a month ago. It paid a
dividend of $0.53 today and then you sold it for $94. What was your dividend yield and capital
gains yield on the investment?
A) 0.54%, 1.13%
B) 0.57%, 1.08%
C) 0.57%, 1.13%
D) 1.08%, 1.18%

Respuesta :

Answer:

B) 0.57%, 1.08%

Explanation:

The computations are shown below:

Dividend yield = (Annual yield) ÷ (market price) × 100

where,

Market price = $94 per share

Annual dividend = $0.53 per share

So, the dividend yield = ($0.53 per share ÷ $94 per share) × 100

= 0.57%

Capital gain yield = (Market price - purchase price) ÷ (purchase price) × 100

                            = ($94 - $93) ÷ ($93) × 100

                            = 1.08%