What is the capital gains yield on this investment

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1. One year ago, you bought a stock for $36.48 a share. You received a dividend of $1.62 per share last month and sold the stock today for $41.18 a share. What is the capital gains yield on this investment?

A. 2.86 percent

B. 4.70 percent

C. 12.88 percent

D. 15.62 percent

2. In the following exercises determine the effective rate corresponding to the given nominal rate:

A. 10% compounded semiannually

B. 9% compounded quarterly

C. 8% compounded monthly

D. 8% compound daily

Reference no: EM131337942

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