An investment of $6000 in Biotech common stock proved to be very profitable. At the end...
An investment of $6000 in Biotech common stock proved to be very profitable. At the end of 3 years the stock was sold for $25,000. What was the rate of return on investment?
Homework Answers
| Rate of return = (Ending value of investment -Beginning value of investment/Beginning value of Investment) | ||||||||||
| Beginning value of investment = $6000 | ||||||||||
| Ending value of investment = $25000 | ||||||||||
| Rate of return = (25000 - 6000)/6000 | ||||||||||
| Rate of return = (19000)/6000 | ||||||||||
| Rate of return = 3.167 | ||||||||||
| In percentage terms, the rate of return of the investment is 317%. | ||||||||||
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