4.C.65 Question Help Suppose you bought XYZ stock 1 year ago for $6.44 per share and...

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Question

4.C.65 Question Help Suppose you bought XYZ stock 1 year ago for $6.44 per share and sell it at $7.77. You also pay a commiss

Answer 1

Answer #1

Answer:-

Given XYZ stock

Buy price = $ 6.44

Selling price = $ 7.77

Commission paid on sale = $ 0.15

As the stock is sold after 1 year

The total annual return ( %) = (Selling price - Buy price - Commission on sale) / Buy price

= $ 7.77 - $ 6.44 - $ 0.15 / $ 6.44

= $ 1.18 / $ 6.44
= 0.1832
Total annual return = 18.32 %

Answer 2

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