Question

What is the rate of return when 35 shares of Stock A, purchased for $20/share, are sold for $815?

Answer 1

Explanation:

To calculate the rate of return when 35 shares of Stock A, purchased for $20/share, are sold for $815, you can use the following formula1:

Rate of Return = (Proceeds - Cost - Commission) / Cost

where Proceeds is the amount received from selling the shares, Cost is the amount paid for the shares, and Commission is the commission paid on the sale1. Plugging in the values, we get:

Rate of Return = (815 - (35 * 20) - 6) / (35 * 20) = 0.2875

Multiplying by 100 to convert to a percentage, we get a rate of return of 28.75%1.