One year ago, you bought a share for $8

Finance Nov 13, 2020

One year ago, you bought a share for $8.03. Unfortunately, the share did not pay you any dividends during that year. The share price is now $10.80. What is the return you received on this share? (as a percentage to the nearest two decimal points. don't use % sign. eg 2.881% is 2.88) aut of Answer:

Expert Solution

Answer:

Stock return = (P₁ – P₀) + D / P₀

P₀ = Initial stock price = $8.03

P₁ = share price at the end of year = $10.80

D = dividends = 0

Stock return = ($10.80 – $8.03) + 0 / $8.03

= $2.77 / $8.03

= 0.3449 or 34.49%

The Return you received on this share is 34.49

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