Question

Inis Wuestion: PL 20 UI 45 (19 m ete Ms Test. 43 pis PUSSIL Greg purchased stock in Bear Stearns and Co. at a price of $88 per share one year ago. The company was acquired by JP Morgan at a price of $11 per share. What is Greg's return on his investment? OA. -96.25% OB. - 100.63% O C. - 113.75% OD. -87.5% Click to select your answer.

Answer 1

Correct answer is option d. -87.5%

Calculation of Greg's return on investmwnt

Return = Current price of share - Purchase price / Purchase price

=11-88 / 88

=-77 / 88

=-87.5%