You bought 450 Apple stock shares at a price of $2

Finance Dec 02, 2020

You bought 450 Apple stock shares at a price of $2.56. The firm conducted a 1:15 reverse share split some time later and you eventually sold your entire position for $19.50 per share 4 years later.
1. How many shares do you own in the end?
2.What was your holding return percentage?
3. What was your effective annual return?

Expert Solution

1]Number of shares = 450/15 =302]Holding return percentage = (30*19.50)/(450*2.56)-1 =-49.22%3]EAR = (1-0.4922)^(1/4)-1 =-15.58%

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