2. Investment returns

An investment's rate of return (ROR), or return on investment (ROI), refers to the increase or decrease in the value of an investment relative to its cost. This return can be expressed either in dollar terms or as a percentage of the cost of the investment Suppose a stock sells for $1,000 and pays no dividends. At the end of one year, the stock's price increases to $1,150 What is the dollar return on investment in this stock ?

a. $150.00

b. $.0.15

c. -$150.00

Based on your understanding of investment returns, complete the following sentence :

If the amount to be received at the end of the investment period is ________( greater than or less than) the amount invested, the investment is said to have a positive return on investment

You gave $1,000 to your cousinAs a token of gratitude, your cousin gave you $2,000 at the end of the year instead of $1,000. you look at this as an investment, then your annual rate of return would be______

Which of the following investments generates a higher annual rate of return ?

A $500 gain on a $5,000 investment for one year

A $500 gain on a $50,000 investment for one year

2. Investment returns An investment's rate of retum (ROR), or retum on imvestment (ROI), refers to the increase or decrease in the value of an investment relative to its cost. This return can be expressed elther in dollar terms or as a percentage of the cost of the investment. Suppose a stock sells for $1,000 and pays no dividends. At the end of one year, the stock's price increases to $1,150. What is the dollar return on investment in this stock? $150.00 30.15 5150,00 Based on your understanding of investment returns, complete the following sentence: If the amount to be received at the end of the investment period is return on imvestment. You gave $1,000 to your cousin. As a token of gratitude, your cousin gave you $2,000 at the end of the year instead of $1,000. If you iook at this as an investment, then your annual rate of return would be Which of the following investments generates a higher ansual rate of return? A $500 galn on a $5,000 investment for one year A $500 gain on a $50,000 investment for one year