what is the total and annual returns on an investment of 2 years regular 3700 shares in a start up company, you sell the shares for $2300 (at a loss)
To calculate the total and annual returns on an investment, we need a few more pieces of information:
1. The purchase price of the shares: How much did you pay for the 3700 shares initially?
2. The time frame: In what time period did you sell the shares?
3. Any dividends received: Did you receive any dividends during the holding period?
4. Any transaction costs: Were there any fees or commissions associated with buying or selling the shares?
Once we have all this information, we can proceed with the calculations.
Let's assume the following information:
1. Purchase price: $X (unknown)
2. Selling price: $2300
3. Holding period: 2 years
4. No dividends or transaction costs
To calculate the total return, we need to calculate the difference between the selling price and the purchase price:
Total Return = Selling Price - Purchase Price
In this case, it would be:
Total Return = $2300 - $X
Since you mentioned that the shares were sold at a loss, we'll assume the selling price was lower than the purchase price. So, the equation becomes:
Total Return = $2300 - $X (Negative value)
As for the annual return, we need to calculate the average annual rate of return over the holding period. However, without the purchase price, we cannot determine the actual rate of return.
Once we have the purchase price, we can calculate the annual return using the formula:
Annual Return = (Total Return / Investment) / Holding Period
Since we know the holding period is 2 years, we can express it as:
Annual Return = (Total Return / Investment) / 2
Let's say the annual return is represented as a percentage (%). We can calculate the annual return percentage using the formula:
Annual Return % = Annual Return * 100
Once you provide the missing information, we can accurately calculate the total and annual returns for your investment.