The S&P 500 Index represents a portfolio comprised of 500 large publicly traded companies. A year ago the index had a value of $4,677 and today the index has a value of $3,824. If the average dividend paid on stocks is 4% of the value of the index at the start of the year, what is the rate of return on the index? a. 18.24% gain b.14.24% gain c.14.24% loss d. 18.24% loss a.. O b.. O c.. O d.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The S&P 500 Index represents a portfolio comprised of 500 large publicly traded companies. A year ago the index had a value of $4,677,
and today the index has a value of $3,824. If the average dividend paid on stocks is 4% of the value of the index at the start of the year,
what is the rate of return on the index?
a. 18.24% gain
b.14.24% gain
c.14.24% loss
d. 18.24% loss
a..
b..
C. .
O d..
Transcribed Image Text:The S&P 500 Index represents a portfolio comprised of 500 large publicly traded companies. A year ago the index had a value of $4,677, and today the index has a value of $3,824. If the average dividend paid on stocks is 4% of the value of the index at the start of the year, what is the rate of return on the index? a. 18.24% gain b.14.24% gain c.14.24% loss d. 18.24% loss a.. b.. C. . O d..
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