SIE Exam Practice Question 876

Question: 876

An investor purchased a share of Omikron stock for $90.00 and sold it for $95.50. If the total return was 7.50%, the dividend paid during the holding period was:

Correct Answer: B

Explanation:

Rt = (Pt - Pt-1 + Dt) ÷ Pt-10.075 = ($95.50 - $90.00 + Dt) ÷ $90.00 Dt = $1.25

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