If you invest $1000 in stock that pays no dividends and sell the stock exactly one year later for $1100,what will be your return? (Ignore commissions and trading fees.)

Question

Quizplus · Accepted Answer

To calculate the return we use the formula:
Return = (Net Profit / Initial Investment) x 100

Here, the net profit is $1100 - $1000 = $100
So, the return would be:
(100 / 1000) x 100 = 10%

Therefore, the correct answer is choice C.

If You Invest $1000 in Stock That Pays No Dividends