Compute the total and annual returns on the described investment.

SixSix 

years after buying 

150150 

shares of XYZ stock for 

​$6060 

per​ share, you sell the stock for $ 13 comma 400.$13,400.

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Part 1

The total return is 

enter your response here​%. 

​(Do not round until the final answer. Then round to one decimal place as​ needed.)

We can compute the total return on the investment using the following steps:

1. **Initial investment**:  
   The investor buys 150 shares at $60 per share, so the total initial investment is:
   \[
   \text{Initial investment} = 150 \times 60 = 9,000 \, \text{USD}
   \]

2. **Final value of the investment**:  
   The final value of the investment is given as $13,400.

3. **Total return formula**:  
   The total return (as a percentage) is calculated by the formula:
   \[
   \text{Total return} = \frac{\text{Final value} - \text{Initial investment}}{\text{Initial investment}} \times 100
   \]

Substitute the values:
\[
\text{Total return} = \frac{13,400 - 9,000}{9,000} \times 100
\]

Let’s calculate this.The total return on the investment is approximately **48.9%**.

Would you like to calculate the annual return or need further details?

Here are some related questions:
1. How is the annualized return calculated from the total return?
2. What impact does the holding period have on annual returns?
3. How does the price per share influence the total return?
4. What are the risks of long-term stock investments?
5. How do dividends affect total return calculations?

**Tip**: Always consider both total and annual returns to assess investment performance over time.

Compute the total and annual returns on the described investment.

Six years after buying 150 shares of XYZ stock for $60 per share, you sell the stock for $13,400.

The total return is __%. (Do not round until the final answer. Then round to one decimal place as needed.)

Learn how to calculate the total and annual returns on an investment of 150 shares of XYZ stock bought at $60 per share and sold for $13,400 after 6 years. This step-by-step guide covers important concepts like percentage return and annualized return.

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