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posledela
3 years ago
6

You bought a stock three months ago for $51.27 per share. The stock paid no dividends. The current share price is $55.36. What i

s the APR and EAR of your investment? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
MA_775_DIABLO [31]3 years ago
5 0

Answer:

APR= 23.91%

EAR= 8%

Explanation:

A stock was bought at $51.27 three months ago

The current share price is $55.36

Therefore the APR of the investment can be calculated as follows

= 55.36-51.27/51.27

= 4.09/51.27

= 0.0797

= 7.97%

APR= 3×7.97

= 23.91%

EAR= (1+0.079/3)^3-1

= 1+0.0263^3-1

= 1.026^3-1

= 0.08×100

= 8%

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