You buy 100 shares of Apple common stock at a price of $55.75. One quarter later,...

You buy 100 shares of Apple common stock at a price of $55.75. One quarter later, you collect a dividend of $1.51 per share and sell your stock for $66.38 per share. What is the rate of return on your investment? (You may ignore commissions and taxes.) Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places. Do not type the % symbol. If the return is negative, then include a minus sign.

Expert Solution

Rate of return = (Selling price - Buying price + Dividend) / Buying price

Rate of return = ($66.38 - $55.75 + $1.51) / $55.75

Rate of return = 0.2178 or 21.78%

jeff jeffy answered 2 years ago

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