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musickatia [10]
3 years ago
6

You own 50 shares of Auto Corporation that you purchased for $30 a share. The stock is currently selling for $50 a share, and yo

u placed a stop loss order at $45. If the stock price drops to $35 a share what is your return on this investment?
Business
1 answer:
timofeeve [1]3 years ago
3 0

Answer: 50%

Explanation:

Purchasing price for each share = $30

Stop loss order placed at $45 for each share.

If the stock price drops to $35, the benefit earned = $ (45-30)= $15

Now, the return on this investment = (benefit earned) ÷(Purchasing price)x 100%

= (15)÷(30)x100%

= 0.5 x 100%

= 50%

So,  your return on this investment = 50%

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