Ask Question
1 June, 11:13

If you buy a stock for $100, receive a $2 dividend and then sell the stock for $90, what is the total return from your investment (in percentage terms) ?

+2
Answers (1)
  1. 1 June, 11:36
    0
    -8%

    Explanation:

    For computing the total return from your investment, first we have to determine the return from investment which is shown below:

    Return on investment = Total inflow - total outflow

    where,

    Total inflow = $90 + $2 = $92

    And, the total outflow = $100

    So, Return on investment would be - $8

    Now the Return on investment in percentage would be

    = Return on investment : investment * 100

    = - $8 : $100 * 100

    = - 8%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If you buy a stock for $100, receive a $2 dividend and then sell the stock for $90, what is the total return from your investment (in ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers