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If the price of a stock increases from $50 to $75, what is the return on investm

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Question: If the price of a stock increases from $50 to $75, what is the return on investment (ROI) as a percentage?

Options:

  1. 25%
  2. 50%
  3. 75%
  4. 100%

Correct Answer: 100%

Solution: 

ROI = ((Final price - Initial price) / Initial price) * 100 = ((75 - 50) / 50) * 100 = 50%

If the price of a stock increases from $50 to $75, what is the return on investm

Practice Questions

Q1
If the price of a stock increases from $50 to $75, what is the return on investment (ROI) as a percentage?
  1. 25%
  2. 50%
  3. 75%
  4. 100%

Questions & Step-by-Step Solutions

If the price of a stock increases from $50 to $75, what is the return on investment (ROI) as a percentage?
  • Step 1: Identify the Initial Price ($50).
  • Step 2: Identify the Final Price ($75).
  • Step 3: Calculate the Change in Price ($75 - $50 = $25).
  • Step 4: Use the ROI formula (Change in Price / Initial Price) * 100.
  • Step 5: Perform the Division ($25 / $50 = 0.5).
  • Step 6: Multiply by 100 to get percentage (0.5 * 100 = 50%).
  • Return on Investment (ROI) – ROI is a financial metric used to evaluate the profitability of an investment, calculated as the percentage increase in value relative to the initial investment.
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