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How do we get the percentages? Sally purchases a stock for $50 and receives a $2 dividend after six months, immediately after which she sells the

How do we get the percentages?

Sally purchases a stock for $50 and receives a $2 dividend after six months, immediately after which she sells the stock for $55. What was her annualized return?


a)   14%

b)   20%

c)    24%

d)   28%

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Great question... View the full answer

1 comment
  • Thanks for the explanation
    • ncraft96
    • Jun 03, 2018 at 2:02pm

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Here is the explanation for... View the full answer

1 comment
  • Thanks
    • ncraft96
    • Jun 03, 2018 at 1:21pm

The way to approach this... View the full answer

2 comments
  • Don't you have to multiply that by 2?
    • ncraft96
    • Jun 03, 2018 at 2:19pm
  • so , sorry , it is for half yearly , so please multiply , it by 2 , to get annualized rate , i.e = 2*14% =28%
    • rranjan1
    • Jun 03, 2018 at 2:27pm

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