Rs 50.00
Rs 1.25
50 times
Rs 23.75
Answer is Right!
Answer is Wrong!
The correct answer is B. Rs 1.25.
Capital gains yield is the annualized rate of return on an investment that is realized when an asset is sold for more than its purchase price. It is calculated by dividing the capital gain by the purchase price and multiplying by 100.
In this case, the beginning price is Rs 25 and the capital gains yield is 5%. Therefore, the capital gain is:
Capital gain = (Capital gains yield) * (Purchase price) = (5%) * (Rs 25) = Rs 1.25
Option A is incorrect because it is the purchase price, not the capital gain.
Option C is incorrect because it is not a meaningful number.
Option D is incorrect because it is the purchase price, not the capital gain.