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Question 3 1 pts Jake buys 500 shares of DEF Corp. for $35.60. One year afterwards, DEF Corps share price decreased to $35.4

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Answer #1

Capital gain = (Ending price – beginning price)/Beginning price

Total Return = (Ending price – beginning price+Dividends)/Beginning price

Since ending price is lower than the beginning price, the answer is

DEF has a capital loss, but the value of total return is positive (due to dividends)

4.Dividend yield = Dividend/Current price

= 1.60/35.60

= 4.49%

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