Share price at the beginning of the year $20 $15 Share price at the end of the year $26 $18 Dividends received during the year $5 $2 Average Co-efficient of variation over the last three years 0.480 0.251 Total number of shares owned 10 000 5 000             Required: Calculate the return on investment per share for each investment.  Calculate the total return earned the year for this entire shareholding of each company. Show the realised and unrealised portion of this total return.          Explain how to use the co-efficient of variation in this investment decision. What share investment is recommended

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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.