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# If stock is sold three months after it is purchased, the formula above

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Joined: 27 Sep 2015
Posts: 57
GMAT 1: 410 Q33 V13
WE: Management Consulting (Computer Software)
If stock is sold three months after it is purchased, the formula above [#permalink]

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26 Dec 2015, 11:43
00:00

Difficulty:

5% (low)

Question Stats:

81% (01:23) correct 19% (01:08) wrong based on 145 sessions

If stock is sold three months after it is purchased, the formula above relates p, d, s, and r, where p is the purchase price of the stock, d is the amount of any dividend received, s is the selling price of the stock, and r is the yield of the investment as a percent. If Rose purchased $400 worth of stock received a$5 dividend and sold the stock for $420, for three months after purchasing it, what was the yield of her investment, according to the formula? (Assuming she paid no commissions.) A. 1.25% B. 5% C. 6.25% D. 20% E. 25% [Reveal] Spoiler: OA Attachments PS1167.jpg [ 4.1 KiB | Viewed 2746 times ] _________________ Discipline does not mean control. Discipline means having the sense to do exactly what is needed. Senior Manager Joined: 11 Nov 2014 Posts: 347 Location: India Concentration: Finance, International Business WE: Project Management (Telecommunications) Re: If stock is sold three months after it is purchased, the formula above [#permalink] ### Show Tags 02 Sep 2016, 05:47 400(5+420-400/400) 25% E Sent from my iPhone Board of Directors Status: QA & VA Forum Moderator Joined: 11 Jun 2011 Posts: 3405 Location: India GPA: 3.5 WE: Business Development (Commercial Banking) If stock is sold three months after it is purchased, the formula above [#permalink] ### Show Tags 02 Sep 2016, 05:56 RSOHAL wrote: If stock is sold three months after it is purchased, the formula above relates p, d, s, and r, where p is the purchase price of the stock, d is the amount of any dividend received, s is the selling price of the stock, and r is the yield of the investment as a percent. If Rose purchased$400 worth of stock received a $5 dividend and sold the stock for$420, for three months after purchasing it, what was the yield of her investment, according to the formula? (Assuming she paid no commissions.)

A. 1.25%
B. 5%
C. 6.25%
D. 20%
E. 25%

With paidlukkha

Answer will be undoubtedly be (E)

$$r$$ = $$400$$$$\frac{(5 + 420 - 400 )}{400}$$

$$r$$ = $$25$$%
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Thanks and Regards

Abhishek....

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Re: If stock is sold three months after it is purchased, the formula above [#permalink]

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23 Dec 2017, 05:01
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Re: If stock is sold three months after it is purchased, the formula above   [#permalink] 23 Dec 2017, 05:01
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