Question

Sue purchased a stock for $25 a share, held it for one year, received a $1.34 dividend, and sold the stock for $26.45. What nominal rate of return did she earn

Answer 1

11.16%

Step-by-step explanation:

Calculation for What nominal rate of return did she earn

Nominal rate of return= ($26.45 + 1.34 − 25) / $25

Nominal rate of return= 0.1116*100

Nominal rate of return=11.16%

Therefore the nominal rate of return that she earn is 11.16%