A private post-secondary corporation had a 1-year low stock price of $5.00 and a high of $7.50. Assuming that you bought it at the lowest price and sold it at its highest price, what is the simple annual rate of return on your stock purchase?

Question

Quizplus · Accepted Answer

To calculate the simple annual rate of return, we need to find the percentage increase from the low to the high price. 
The increase is (7.5 - 5) = $2.50 
The percentage increase is (2.5/5) * 100% = 50% 
Therefore, the simple annual rate of return is 50%.

A Private Post-Secondary Corporation Had a 1-Year Low Stock Price