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

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Ryerson (Ted Rogers) Thread Master
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If stock is sold three months after it is purchased, the formula above [#permalink]

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New post 26 Dec 2015, 10:43
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Question Stats:

81% (01:20) correct 19% (00:58) wrong based on 113 sessions

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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.)

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A. 1.25%
B. 5%
C. 6.25%
D. 20%
E. 25%
[Reveal] Spoiler: OA

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

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New post 02 Sep 2016, 04:47
400(5+420-400/400)

25%

E

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

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New post 02 Sep 2016, 04:56
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.)

Image

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

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New post 23 Dec 2017, 04:01
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Re: If stock is sold three months after it is purchased, the formula above   [#permalink] 23 Dec 2017, 04:01
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