Question
An investments rate of return (ROR), or return on investment (ROI), refers to the increase or decrease in the value of an investment relative to
An investments 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.
1. Suppose a stock sells for $800 and pays no dividends. At the end of one year, the stocks price decreases to $700. What is the dollar return on an investment in this stock? Please choose either the correct one ?
A. -$100.00 B. $100.00 C. -$0.12
2. You gave $100 to your cousin. As a token of gratitude, your cousin gave you $2 at the end of the year instead of $100. If you look at this as an investment, then your annual rate of return would be ? Please choose either the correct one ?
A. -127.40%
B. -117.60 %
C. -78.40 % D. -98.00 %
3. Which of the following investments generates a higher annual rate of return? Please choose either A or B ?
A. A $500 gain on a $5,000 investment for one year
B. A $500 gain on a $50,000 investment for one year
Thank you very much for helping me out with these problem
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