An investor purchased 100 shares of stock in a company for $20 per share. One year later, the investor sold all the shares for $1,950. What is the investor's rate of return? А. 2.5% В. -2.5% С. -1.6%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
Problem 2PROB
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An investor purchased 100 shares of
stock in a company for $20 per
share. One year later, the investor
sold all the shares for $1,950. What
is the investor's rate of return?
A. 2.5%
B. -2.5%
C. -1.6%
D. 1.6%
Transcribed Image Text:An investor purchased 100 shares of stock in a company for $20 per share. One year later, the investor sold all the shares for $1,950. What is the investor's rate of return? A. 2.5% B. -2.5% C. -1.6% D. 1.6%
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