Answer:
ROI = 10%
Return in dollar value = $500
Explanation:
To calculate the return on investment (ROI) when buying 250 shares of stock for $5000 and selling it one year later for $5500, we need to first calculate the gain and then compute the ROI.
The gain from this transaction is the difference between the selling price and the purchase price:
Gain = Selling price - Purchase price
Gain = $5500 - $5000
Gain = $500
To calculate the ROI, we can use the following formula:
ROI = (Gain / Investment) x 100%
Substituting the values in the above formula, we get:
ROI = ($500 / $5000) x 100%
ROI = 10%
Therefore, the ROI for this transaction is 10%.
To calculate the return in dollar value, we simply subtract the purchase price from the selling price:
Return in dollar value = Selling price - Purchase price
Return in dollar value = $5500 - $5000
Return in dollar value = $500
Therefore, the return in dollar value from this transaction is $500.