Question

A stock purchased on January 1 cost $4.35 per share. The same stock, sold on December 31 of the same year, brought in $4.75 per share. What was the approximate return on this stock?

Answer 1

Approximate rate of return will be 9 %

Step-by-step explanation:

We have given a stock is purchased on January 1 of cost $4.35

And sold at the same year on December 31

We have to find the rate of return

Rate of return will be equal to
`=(cost\ of\ stock\ on\ December\ 31-price\ of\ stock\ on\ January\ 1)/(price\ of\ stock\ on\ January\ 1)=(4.75-4.35)/(4.35)=0.09` = 9%

So approximate rate of return will be 9 %