if the stock price is 100$ and return rate is 15%. then what would be the...

if the stock price is 100$ and return rate is 15%. then what would be the initial price to expected rate of return ratio?

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Expert Solution

Return rate=15%

Current price=$100

Rate of return=[current price-initial price]/initial price

So 0.15=(100-initial price)/initial price

So initial price=$86.95

Rahul Sunny answered 2 years ago

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