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

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

• 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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