You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60 4-Mar-2021 $40 5-Mar-2021 $100 Investor B bought 100 shares of XYZ on 2-Mar-2021 and sold all the shares on 5-Mar-2021. Which answer is the closest value to the arithmetic average rate of return for the investor?   A. 20%   B. 15%   C. 25%   D. 0%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You have the following share price of XYZ.

 

DATE

Price

2-Mar-2021

$100

3-Mar-2021

$60

4-Mar-2021

$40

5-Mar-2021

$100

Investor B bought 100 shares of XYZ on 2-Mar-2021 and sold all the shares on 5-Mar-2021. Which answer is the closest value to the arithmetic average rate of return for the investor?

  A.

20%

  B.

15%

  C.

25%

  D.

0%

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