Question

A stock purchased on January 1 cost 4.35 per share. The same stock, sold on December 31 of the same year, brought in4.75 per share. What was the approximate return on this stock?

Answer 1

The approximate return on the stock, purchased at $4.35 per share and sold at $4.75 per share, is calculated as a profit of $0.40 per share, which is approximately a 9.20% return on the investment.

Step-by-step explanation:

The approximate return on a stock can be calculated by determining the difference between the selling price and the purchase price, then comparing that difference to the original purchase price. In this case, the stock was bought at $4.35 per share and sold at $4.75 per share. To find the approximate return, we subtract the purchase price from the selling price ($4.75 - $4.35 = $0.40). We then divide the profit per share by the purchase price ($0.40 / $4.35) and multiply by 100 to get the percentage return, which is approximately 9.20%.