Question

Suppose you invested $59 in the peter griffin stock fund a month, paid a dividend of 0.38 today and then you sold it for $66. What was your return on the investment?

(a) 8.76%
(b) 13.76%
(c) 12.51%
(d) 10.01%

Answer 1

The return on investment is 8.76%. Therefore, the correct option is A.

Step-by-step explanation:

To calculate the return on investment, we need to consider the initial investment, dividends received, and the selling price of the investment.

In this case, the initial investment is $59 and the dividend received is $0.38. The selling price is $66.

To calculate the return, we can use the formula: Return on Investment = [(Selling Price + Dividends) - Initial Investment] / Initial Investment x 100%

Plugging in the values, we get: [(66 + 0.38) - 59] / 59 x 100% = 8.76%

Therefore, the return on investment is 8.76%.