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jeff purchased 1,000 shares of a speculative stock on January 2 for $1.99. six months later...

jeff purchased 1,000 shares of a speculative stock on January 2 for $1.99. six months later on july 1, he sold them for $10.09 per share. he uses an online broker thay charges him $10 per trade. what is jeffs annualized HPR on this investment?
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Answer #1

Answer:

HPR = (Realized sales value - Purchase cost) / Purchase cost

= [((10.09 * 1000 - 10) - (1.99 * 1000)) / (1.99 * 1000)]

= 406.5327%

HPR for six month period = 406.53%

Annualized HPR = (1 + 406.5327%) 2 - 1

= 2465.75%

Annualized HPR on this investment = 2465.75%

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