Answer:
a. Calculate the total return for your $3,960 investment= $672
b) percentage of total return = 17%
Explanation:
Total return is the sum of capital appreciation plus the distribution received over the course of the investment period.
Capital gain is the difference between the current value of the investment and the initial cost of the investment
Total return = capital gain + distributed dividends
Capital gain= ($38 × 120) - ($33× 120)
= $600
Distributed dividend = ($0.60× 120) = $72
Total return = $600 + $72 = $672
Percentage return =( total return/ cost of investment ) × 100
= 672/3,960 × 100
= 17%
a. Calculate the total return for your $3,960 investment= $672
b) percentage of total return = 17%
