Juan purchased shares in ABC company for $5,000 three years ago.During these three years he received $600 in dividends.He just sold the stock for $4,300.What was his total return on this investment?
A)-14%
B)-2%
C)12%
D)14%

Question

Quizplus · Accepted Answer

Juan's initial investment was $5,000 and he received $600 in dividends. 
Total investment = $5,000 
Total return = $600 + $4,300 = $4,900 
Percentage return = (Total return / Total investment) x 100 
= (4,900 / 5,000) x 100 
= 98% 
Since the selling price is less than the initial investment, we consider it a loss. Therefore, the total return is -2%, which is closest to choice B: -2%.

Juan Purchased Shares in ABC Company for $5,000 Three Years