Assume that you invested $400,000 in a stock that returned 6%, $300,000 invested in another that returned 14%, and $500,000 invested in a third stock that returned 9%. What return did you earn? O 11.30% O 12.25% 10.35% 9.25%

Assume that you invested $400,000 in a stock that returned 6%, $300,000 invested in another that returned 14%, and $500,000 invested in a third stock that returned 9%. What return did you earn? O 11.30% O 12.25% 10.35% 9.25%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 10PROB

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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

Assume that you invested $400,000 in a stock that returned 6%, $300,000 invested in another that returned 14%, and $500,000 invested in a third stock that returned 9%.
What return did you earn?
O 11.30%
12.25%
O 10.35%
9.25%

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