Question

At the start of a year, company XYZ's stock is $40 per share. At the end, the company's stock is $60 per share. What was the stock price's rate of return (percent increase)?

Answer 1

We have been given that at the start of a year, company XYZ's stock is $40 per share. At the end, the company's stock is $60 per share. We are asked to find the percent increase.

We will use percent increase formula to solve our given problem.

`\text{Percent increase}=\frac{\text{Final}-\text{Initial}}{\text{Initial}}* 100\%`

`\text{Percent increase}=(60-40)/(40)* 100\%`

`\text{Percent increase}=(20)/(40)* 100\%`

`\text{Percent increase}=0.5* 100\%`

`\text{Percent increase}=50\%`

Therefore, the stock price's rate of return was 50%.