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).
<h3>What is the rate of return?</h3>
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.
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