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You purchased 100 shares of stock for a share price of $16.84. You sold the stock...

You purchased 100 shares of stock for a share price of $16.84. You sold the stock two years later for a share price of $18.78. You also received total dividend payments of $0.77 per share. What was your total return on your investment?

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Answer #1

ANSWER:

Return on investment (ROI) = return/cost of investment

In case of investment in share,

Return = capital appreciation + dividend

Capital appreciation = selling price of shares - purchase price of shares

= $18.78 - $16.84 = $1.94

Therefore,

Return = $1.94 + $0.77 = $2.71

Cost of investment = $16.84

Therefore,

Return on investment (ROI) = $2.71/$16.84

= 16.1%

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