Question

Five years after buying 200 shares of xyz stock for $25 per share, you sell the stock for $20,000:

a) Total loss percentage
b) Decrease in stock value
c) Annual return percentage
d) Total profit percentage

Answer 1

The total loss percentage is 30%. The decrease in stock value is $5,000. The annual return percentage is 8% and the total profit percentage is -24%.

Step-by-step explanation:

To calculate the total loss percentage, subtract the selling price from the buying price of the shares and divide it by the original buying price. In this case, the buying price is $25 per share and the selling price is $20,000. The total loss is $20,000 - ($25 * 200) = $15,000. The total loss percentage is ($15,000 / ($25 * 200)) * 100 = 30%.

To calculate the decrease in stock value, subtract the selling price from the buying price of the shares. In this case, the decrease in stock value is $25 * 200 - $20,000 = $5,000.

To calculate the annual return percentage, subtract the buying price from the selling price, divide it by the buying price, and divide the result by the number of years. In this case, the annual return percentage is (($20,000 - ($25 * 200)) / ($25 * 200)) / 5 * 100 = 8%.

To calculate the total profit percentage, subtract the buying price from the selling price of the shares, divide it by the buying price, and multiply the result by 100. In this case, the total profit percentage is (($20,000 - ($25 * 200)) / ($25 * 200)) * 100 = -24%.