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Greg purchased stock in Bear Stearns and Co. at a price of $88 per share one...

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? 44) A) -96.25% B) -100.62% C) -113.75% D) -87.50%

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Answer #1

D) -87.50%

Return on Investment = (Selling Price - Cost of Acquisition) / Cost of Acquisition

Return on Investment = ($11 - $88) / $88 = -87.50%

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