What would be the return on 200 shares of stock purchased on January 1, 2005, at $60 per share and sold on December 31, 2005, at $80 per share? Also assume that the company paid dividends of $2 per share over the year. The prices include all brokerage fees. Round to the nearest whole percent.

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Quizplus · Accepted Answer

The return on the investment is calculated as follows:Return = (Selling price - Purchase price + Dividends) / Purchase priceReturn = ($80 - $60 + $2) / $60Return = $22 / $60Return = 0.37Return = 37%

What Would Be the Return on 200 Shares of Stock