Question

you invested $2,000 in the stock market one year ago. today the investment is valued at $1,620

newconnect.mheducation.com/flow/connect.html Chapter 46 Help Save & Exit Submit Check my work You invested $2,000 in the stock market one year ago. Today, the investment is valued at $1620. What return did you earn? (Negative answer should be indicated by a minus sign.) 0.33 points Retur eamed % eBook Print References What return would you need to get next year to break even overall? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Return eamed < Prey 2 of 30 !!! Next >

Answer 1

1. The return earned from $2000 one year ago with its value today at $1620

So,lets calculate return earned= $1620 - $2000

= - $ 380

now , (-$380 / $1620)*100= - 19%

So,the return earned from one year investment was negative i.e minus 19 %.

2. Let us calculate the return required to get break even overal

= (loss in previous year / current value of investment) * 100

= ($380 / $1620)* 100

=23.4567%

So, the return earned should be 23.4567% to get break even