One Year Ago,you Bought a Share for $36

question 18

Multiple Choice

One year ago,you bought a share for $36.48 a share.You received a dividend of $1.62 per share last month and sold the share today for $40.18 a share.What is the capital gains yield on this investment?

• A)2.86 per cent
• B)3.70 per cent
• C)10.14 per cent
• D)12.29 per cent
• E)14.58 per cent

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Definitions:

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

Simple Linear Regression

Simple Linear Regression is a statistical method to model the relationship between a single independent variable and a dependent variable by fitting a linear equation.

Sample Correlation Coefficient

A measure that indicates the degree of linear relationship between two variables in a sample, ranging between -1 and 1, where 1 means a perfect positive correlation and -1 a perfect negative correlation.

Regression Statistic

A measure used in regression analysis to assess the relationship between variables, typically involving parameters such as coefficients that indicate the strength and direction of the relationships.