Question

Compute the total and annual returns on the described investment Four years after buying 50 shares of XYZ stock for $60 per​ share, you sell the stock for $ 4600.

1-The total return is ___%. (Round to one decimal place)

2-The annual return is the APY that would give the same growth ___%

Answer 1

$3,000 Cost of investment 50 Shares $60 Per share = Sale value of investment Term 4 Years $4,600 Total return earned = (Sale value of investment - Cost of investment) / Cost of investment (S4,600 $3,000) / $3,000 $1,600 S3,000 = 0.53333333 = 53.333333 % = 53.3 % (Rounded) Annual return Total return earned / Term 53.3%/4 13.325% 13.33 % (Rounded)

Answer 2

the rorrect annual return on my class work says 8.9 not 13.33 however the first answer was right

Answer 3

Six years after buying 150 shares of stock for $50 per share, you sell the stock for $11,600