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%
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%
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
Problem 2PROB
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Question
![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%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc69b946-6ab7-43e3-82e9-048fa0b60be9%2Fb2d76193-312f-4600-a658-7264917903d5%2Fphi0hp_processed.jpeg&w=3840&q=75)
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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