Question

Suppose you invested $58 in the Ishares Dividend Stock Fund​ (DVY) a month ago. It paid a dividend of $0.65 today and then you sold it for $68. What was your return on the​ investment?

Answer 1

18.36%

Step-by-step explanation:

Calculation for the return on the​ investment?

Using this formula

Return on investment = Net profit/Cost of Investment

The first step is to find the net profit using this formula

Net profit =( Sales amount +Dividend)-Dividend Stock Fund Investment

Let plug in the formula

Net profit = ($68 + $0.65) - $58 =

Net profit= $68.65-$58

Net profit= $10.65

Now let calculate the return on investment

Using this formula

Return on investment = Net profit/Cost of Investment

Let plug in the formula

Return on investment=$10.65/58

Return on investment= 18.36%

Therefore the return on the investment will be 18.36%