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on janurary 2,2004 tiffany bought 100 shares of johnson companys's stock for $12 per share. She...

on janurary 2,2004 tiffany bought 100 shares of johnson companys's stock for $12 per share. She sold 100 shares on Dec 21, 2014 for $60 per share. What is her annual return on investing in Johnson companys stock over the 11 years from 2004 to 2014?

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Answer #1

Annual return on Stock is given by Annualised return also known as CAGR(Compounded Annual Growth rate).

CAGR = [(End share Price/ Beg Share Price)^1/years] -1

= ( 60/12)^1/11 -1

= 15.75%

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