Question

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Answer 1

The rate of return is 25%. Therefore, option C is the correct answer.

Given that, at the start of a year, the MLS company's stock initially sold for $40 per share. At the end of the quarter, the company's stock was selling for $50 per share.

We need to find what was the stock price's rate of return (per cent increase).

What is the rate of return?

In finance, return is a profit on an investment. It comprises any change in the value of the investment, and/or cash flows that the investor receives from that investment, such as interest payments, coupons, cash dividends, stock dividends or the payoff from a derivative or structured product.

Now, return per share= 50-40=$10

Rate of return = Return per share/Initial value of the share

=10/40=0.25×100=25%

Therefore, option C is the correct answer.

To learn more about the rate of return visit:

brainly.com/question/14378808.

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