You purchased shares of Global Security at a price of $75.75 one-year ago today.If you sell the shares today for $89.00, what is your rate of return?
A)35.00%
B)12.50%
C)17.50%
D)25.00%

Question

Quizplus · Accepted Answer

The rate of return formula is:

(rate of return = (ending price - beginning price) / beginning price) x 100%

Plugging in the given values, we get:

(rate of return = ($89.00 - $75.75) / $75.75) x 100% = 17.4%

Rounding to the nearest tenth, the rate of return is approximately 17.5%. Therefore, the best choice is C)17.5%.

You Purchased Shares of Global Security at a Price of $75.75