Question

stacy buys a stock for $80 per share and sells it a year later for $50 per share. if she bought 150 shares, what is her return on investment (roi)? use the formula roi = ( (final value - initial value) / initial value ) × 100. -25% -62.5% -50% -37.5%

Explanation:

Step1: Calculate initial value

Initial value = $80\times150 = 12000$

Step2: Calculate final value

Final value = $50\times150 = 7500$

Step3: Calculate ROI

ROI=$\frac{7500 - 12000}{12000}\times100$=$\frac{- 4500}{12000}\times100=-37.5\%$

Answer:

-37.5%