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Five years after paying $12,646 for shares in a new company, you sell the shares for $5,306. What is the total return?

a) -58.00%
b) -52.99%
c) -57.85%
d) -58.12%

1 Answer

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Final answer:

The total return is calculated by subtracting the selling price from the purchase price, dividing by the purchase price, and multiplying by 100. The total return in this scenario is -58.12%.

Step-by-step explanation:

The total return on the investment can be calculated using the initial purchase price and the selling price of the shares. In this case, the original purchase was $12,646 and the shares were sold for $5,306. The change in value is $5,306 - $12,646 = -$7,340.

To find the total percentage return, we divide the change in value by the original purchase price, and then multiply by 100 to get a percentage. So, the total return is ($7,340 / $12,646) × 100 = -58.12%. Therefore, the correct answer is d) -58.12%.

User Thomas Lindauer
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