Question

Saved Calculate the nominal percent return from an investment of $300 in a share whose price increases to $375 after a year. Multiple Choice 75%, 25% O 16.67 < Prox 2 of 4 Next > MacBook Air 30 888 A 2 # 3 $ 4 % 5 6 & 7 8 9 o W E R T Y C 0 P S D F G H KL

Answer 1

We have to calculate the nominal percent return from an investment of $300 in a share whose price increases to $375 after a year.

We know, Nominal rate return = (Current market value - Original investment value)/(Original investment value).

Here, the current market value = $375 and the original investment value = $300.

Thus, nominal rate return = ($375 - $300)/$300 = $75/$300 = $0.25 .

Thus, nominal percent return = Nominal rate return * 100% = 0.25*100% = 25%

Thus, the nominal percent return from an investment of $300 in a share whose price increases to $375 after a year = 25% .

Thus, the third option is correct.