You own 50 shares of Auto Corporation that you purchased for $30 a share. The stock is currently selling for $50 a share and you placed a stop loss order at $45. If the stock price drops to $35 a share what is your return on this investment?
A)-30.0%
B)16.7%
C)50.0%
D)66.7%
E)150.0%

Question

Quizplus · Accepted Answer

A stop loss order at $45 means the shares would be sold when the price drops to $45. The purchase price was $30, so the gain per share is $45 - $30 = $15. The return is ($15 gain / $30 cost) * 100% = 50.0%.

You Own 50 Shares of Auto Corporation That You Purchased