Question

I really need help with the below question. I will give thumbs up for fast and accurate work. Thank you very very much!

2) (15 points) You purchased 100 shares of MI Properties for $15 per share. You sold 50 shares at the end of the first year for $15.20, and sold the remaining shares for $15.50 per share at the end of the second year. What was the ROR of your investment, to one significant digit? Show work to receive partial credit.

Answer 1

Price of per share when purchased = 15

number of shares = 100

Total amount = 15 *100 = 1500

After 1 year

number of shares sold = 50

price = 15.20

Total amount = 15.20 * 50 = 760

After 2 years

number of shares sold = 50

price = 15.50

Total amount = 15.50 * 50 = 775

So Total amount you will have after 2 years = 760 + 775 = 1535

Total amount invested intially =1500

So rate of return = (1535 - 1500) / 1500 *100

So rate of return = 35 / 1500 * 100 = 2.33%

Let me know if you have any doubt