6 years after buying 100 shares of XYZ stock for $50 per share, you sell the stock for $7700.
The total return is ____%
The annual return is ____%
cost = 5000
gain=7700 - 5000 = 2700
percent gain = 100 (2700/5000)
divide that by 6 for yearly gain
4 years after buying 200 shares of XYZ stock for $60per share, you sell the stock for 17,900
To calculate the total return, we need to subtract the original purchase price from the selling price and then divide it by the original purchase price.
Total return = ((Selling price - Purchase price) / Purchase price) * 100
Total return = ((7700 - (100 * 50)) / (100 * 50)) * 100
Total return = (7700 - 5000) / 5000 * 100
Total return = 2700 / 5000 * 100
Total return = 0.54 * 100
Total return = 54%
To calculate the annual return, we need to know the number of years the investment was held. In this case, it was held for 6 years.
Annual return = Total return / Number of years
Annual return = 54% / 6
Annual return = 9%
To calculate the total return, we need to find the difference between the selling price and the buying price, and then divide it by the buying price:
Total return = ((Selling Price - Buying Price) / Buying Price) * 100
In this case, the buying price of each share is $50 and you bought 100 shares, so the total investment is $50 * 100 = $5000.
The selling price is given as $7700.
Total return = (($7700 - $5000) / $5000) * 100
= ($2700 / $5000) * 100
= 54%
Therefore, the total return is 54%.
To calculate the annual return, we need to know the holding period, i.e., the number of years you held the investment.
In this case, the holding period is 6 years. So we can calculate the annual return using the formula:
Annual return = (Total return / Holding period) * 100
Annual return = (54% / 6) * 100
= 9%
Therefore, the annual return is 9%.