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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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