Greg purchased stock in Bear Stearns and Co. at a price of $88 per share one year ago. The

company was acquired by JP Morgan at a price of $11 per share. What is Gregʹs return on his

investment?

A) - 87.50%

B) - 113.75%

C) - 100.62%

D) - 96.25%

Question

Brittany Brennan

Business

3 May, 06:47

Greg purchased stock in Bear Stearns and Co. at a price of $88 per share one year ago. The

company was acquired by JP Morgan at a price of $11 per share. What is Gregʹs return on his

investment?

A) - 87.50%

B) - 113.75%

C) - 100.62%

D) - 96.25%

+5

Answers (1)

Know the Answer?

Cindy Kelley · Answer 1

A) - 87.50%

Explanation:

The computation of the return on the investment is shown below:

= (Acquired price by JB Morgon - purchase price per share) : (purchase price per share)

= ($11 per share - $88 per share) : (88 per share)

= - ($77 per share) : (88 per share)

= - 87.50%

We simply take the difference of the price and then divide it with the purchase price per share so that the correct percentage can come.

Greg purchased stock in Bear Stearns and Co. at a price of $88 per share one year ago. Thecompany was acquired by JP Morgan at a price of $11 per share. What is Gregʹs return on hisinvestment?A) - 87.50%B) - 113.75%C) - 100.62%D) - 96.25%

Greg purchased stock in Bear Stearns and Co. at a price of $88 per share one year ago. The

company was acquired by JP Morgan at a price of $11 per share. What is Gregʹs return on his

investment?

A) - 87.50%

B) - 113.75%

C) - 100.62%

D) - 96.25%