An investor purchased 50 shares ofstock in a company for $600. Oneyear later, the investor sold allI 50shares for $13 per share. What is theinvestor's rate of return?А. -8.3%В. 8.3%С. 7.7%D. -7.7%

purchase price = $600 selling price = $13 shares = 50 total selling price = $13 x 50 = $650

An investor purchased 50 shares of stock in a company for $600. One year later, the investor sold all 50 shares for $13 per share. What is the investor's rate of return? A. -8.3% В. 8.3% C. 7.7% D. -7.7%

An investor purchased 50 shares of stock in a company for $600. One year later, the investor sold all 50 shares for $13 per share. What is the investor's rate of return? A. -8.3% В. 8.3% C. 7.7% D. -7.7%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter5: The Cost Of Money (interest Rates)

Section: Chapter Questions

Problem 2PROB

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Question

An investor purchased 50 shares of
stock in a company for $600. One
year later, the investor sold allI 50
shares for $13 per share. What is the
investor's rate of return?
А. -8.3%
В. 8.3%
С. 7.7%
D. -7.7%

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