Question

Alexis bought a stock for $34 a share two years ago. The stock does not pay any dividends. Today she sold the stock for $28.50 a share. What was her internal rate of return on this investment?

Answer 1

internal rate of return -16.17%

Step-by-step explanation:

The internal rate of return is negative because the investment didn't receive dividends for two years. It means that the stock lost value. How much? 16.17% of its value in two years.

34 * (1 - 16,17%) = 28.5