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\(r=400\left(\dfrac{D+S-P}{P}\right)\)
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.)
Answer: E
Source: Official Guide
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.)
Answer: E
Source: Official Guide
