Answer:
no option is correct
long term capital gains = ($24.50 - $22) x 500 = $1,250
dividend income = $0.32 x 500 = $160
total return = $1,410
Maybe your teacher is asking about long term capital gains only. If that is the case, then option A. $1,250 is correct
Explanation:
total return = ending value - initial value + dividends received = (500 x $24.50) - (500 x $22) + (500 x $0.32) = $12,250 - $11,000 + $160 = $1,410
holding period return = (ending value - initial value + dividends received) / initial value = $1,410 / $11,000 = 0.1282 = 12.82%
