Question

Jack invested $500 in the shares of a company x and $750

Answer 1

Assuming he sold all the shares of both companies for $600 and $900 respectively. what the ratio of return on investment from company x to that from company y will be is : 2:3

First step is to calculate x return on investment

x return on investment = $600 - $500

x return on investment= $100

Second step is to calculate y return on investment

y return on investment= $900 - $750

y return on investment= $150

Now let determine the ratio of return on investment from company x to that from company y

Using this formula

Ratio of return on investment=x return on investment/y return on investment

Let plug in the formula

Ratio of return on investment=100/150

Ratio of return on investment=2/3

Ratio of return on investment=2:3

Inconclusion assuming he sold all the shares of both companies for $600 and $900 respectively. what the ratio of return on investment from company x to that from company y will be is : 2:3

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