Give step-by-step solution with explanation and final answer:You bought a stock one year ago for $48.38 per share and sold it today for $59.19 per share. It paid a $1.16 per share dividend today. What was your realized return? The realized retum was [ ]%. (Round to two decimal places.)
Question:
Give step-by-step solution with explanation and final answer:
You bought a stock one year ago for $48.38 per share and sold it today for $59.19 per share. It paid a $1.16 per share dividend today. What was your realized return?
The realized retum was [ ]%. (Round to two decimal places.)
This is AI generated Response.
Asked by: zzzz
Created at: 2025-06-01 11:39:35
Asked by: zzzz
Created at: 2025-06-01 11:39:35
Final Answer:
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Let's solve the problem step by step:
### **Given:**
- **Purchase price (P₀):** $48.38
- **Selling price (P₁):** $59.19
- **Dividend received (D):** $1.16
### **Formula for Realized Return:**
\[
\text{Realized Return} = \frac{(P_1 - P_0) + D}{P_0} \times 100\%
\]
### **Step 1: Calculate the gain from price appreciation**
\[
P_1 - P_0 = \$59.19 - \$48.38 = \$10.81
\]
### **Step 2: Add the dividend received**
\[
\text{Total gain} = \$10.81 + \$1.16 = \$11.97
\]
### **Step 3: Calculate the realized return**
\[
\text{Realized Return} = \frac{\$11.97}{\$48.38} \times 100\%
\]
\[
\text{Realized Return} = 0.2474 \times 100\%
\]
\[
\text{Realized Return} = 24.74\%
\]
---
### **Final Answer:**
\[
\boxed{24.74\%}
\]
**(Rounded to two decimal places.)**
Question:
i need 2 lines pure theory
This is AI generated Response.
Asked by: zzzz
Created at: 2025-06-01 11:42:53
Asked by: zzzz
Created at: 2025-06-01 11:42:53
Final Answer:
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The realized return accounts for both capital gains and dividends received over the investment period, reflecting the total percentage earned from holding the stock. It measures the actual profitability of the investment, including income and price appreciation.
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