Math Problem Statement
Suppose you bought XYZ stock 1 year ago for
$5.485.48
per share and sell it at
$8.588.58.
You also pay a commission of
$0.250.25
per share on your sale. What is the total return on your investment?
Question content area bottom
Part 1
The total return is
enter your response here%.
(Round to the nearest tenth as needed.)\
Solution
To calculate the total return on your investment, we need to follow these steps:
Formula for Total Return:
Given values:
- Purchase Price: $5.48 per share
- Selling Price: $8.58 per share
- Commission: $0.25 per share
Step-by-step calculation:
-
Calculate the net selling price:
-
Calculate the total return:
Final Answer:
The total return on your investment is approximately 52.0%.
Do you need further clarification on this calculation? Or any additional details?
Related Questions:
- How would your total return change if the commission was higher?
- What would the return percentage be if the stock price decreased instead of increased?
- How can you calculate total return if dividends were received during the year?
- What is the difference between total return and annualized return?
- How would your total return be affected by holding the stock for 2 years instead of 1 year?
Tip:
When calculating returns, always consider both the purchase price and any costs, such as commissions or fees, to get an accurate measure of your profitability.
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Math Problem Analysis
Mathematical Concepts
Financial Mathematics
Return on Investment
Percentages
Formulas
Total Return = ((Selling Price - Purchase Price - Commission) / Purchase Price) * 100
Theorems
Return on Investment Calculation
Suitable Grade Level
Grades 10-12
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