Question

Compute the total and annual returns on the described

investment. six years after buying 150 shares of XYZ stock for $80
per share, you sell the stock for $19,200. the tots return is
__%?

Answer 1

To compute the total return on your investment, subtract the buying price from the selling price. Then, divide the total return by the buying price and multiply by 100 to get the percentage.

Step-by-step explanation:

To compute the total return on your investment, you need to calculate the difference between the selling price and the buying price. In this case, you bought 150 shares of XYZ stock for $80 per share, so the total buying price is 150 x $80 = $12,000. Six years later, you sold the stock for $19,200. The total return is the difference between the selling price and the buying price: $19,200 - $12,000 = $7,200.

To calculate the total return as a percentage, divide the total return by the buying price and multiply by 100: ($7,200 / $12,000) x 100 = 60%. Therefore, the total return on your investment is 60%.