Question

Questions Problem 16-02 Question of 15 Check My Work (1 remaining) Book 10. O Problem 16-02 You sold a stock for $100 that you purchased fifteen years earlier for $30. What was the holding period return and annualized compounded returns? Use Appendix A to answer the questions. Round your answers to the nearest whole number, Holding period retur: 90.00 3 Annualized compounded return: 16.59 3 de Feedback Incorrect Check it Works remaining) >

Answer 1

Current price of stock = $100 Purchase price of stock = $30 Holding period of stock = 15 Years Holding period return = [(Current price of stock - Purchase price of stock) / Purchase price of stock] * 100 = [($100-$30) / $30] * 100 = [$70 / $30] * 100 = 233.3333333 % = 233.33 % (Rounded) Annualized compound return = Holding period return / Holding period = 233.33 %/15 = 15.555555 % = 15.56 % (Rounded)