Question

Marcus purchased 80 shares of stock in a computer company at $74.19 per share and Taylor purchased 65 shares of stock in a different computer company for $85.21 per share. After holding the stock for two years, Marcus sold his for a total of $6,404.57, and Taylor sold hers for a total of $6,192.83. Which person had a higher ROI and by how much?

Answer 1

Answer: Taylor, by 3.9 pp ($184.81)

Explanation:

Marcus: Invested 80 x 74.19 = 5935.20

Taylor: Invested 65 x 85.21 = 5538.65

After 2 y

Marcus: Sold for 6404.57

Taylor: Sold for 6192.83

Net profit

Marcus: 6404.57 - 5935.20 = 469.37

Taylor: 6192.83 - 5538.65 = 654.18

ROI

Marcus: 469.37/5935.20 * 100 = 7.91%

Taylor: 654.18/5538.65 * 100 = 11.81%

Taylor had a higher ROI by 3.9 percentage points (11.81 - 7.91)