Question

What is the rate of return when 10 shares of Stock

A, purchased for $30/share, are sold for $380? The
commission on the sale is $6.
Rate of Return = [?] %
Give your answer as a percent rounded to the
nearest tenth.

Answer 1

24.7%

Explanation:

You want to know the rate of return if 10 shares of stock purchased at $30 per share are sold for $380 with a commission on the sale of $6.

Return

The net proceeds from the sale will be ...

$380 -6 = $374

Rate of return

The percentage change in stock value is ...

% change = (proceeds/cost -1) × 100%

% change = (374/300 -1) × 100% ≈ 24.7%

The rate of return on the stock is about 24.7%.

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