Question

Please Help ASAPPP!!!
Last year, Yolanda purchased 60 shares of Stock A at $175 per share, 110 shares of Stock B at $100 per share, and a $1250 bond with a 4.75% coupon for $1400. Yolanda sold both stocks today. Stock A is worth $185 per share and Stock B has a value of $104 per share. Assuming neither stock paid a dividend, which investment has the lowest rate of return?

Stock A

Stock B

Bond

Stock A and Stock B

Answer 1

Can you make an attempt?

Answer 2

i tried already, can you help?

Answer 3

@whpalmer4
@jim_thompson5910

Answer 4

rate of return is calculated as: difference in price, divided by initial cost

Answer 5

I think its stock a

Answer 6

A: 10/175
B: 4/100
bond; 1250(.0475)/1400

Answer 7

@amistre64 I dont understand

Answer 8

you dont understand what .. how to find a difference from one price to the next? or how to divide?

Answer 9

like did you want me to find the value of the bond?

Answer 10

the last one, yes. you would have to calculate the amount of return you got on the bond

Answer 11

1250(.0475) = 57 dollars

57 on your initial investment is 57/1400

Answer 12

ok bond = 0.0424

Answer 13

the smallest return is therefore the .40, stock B

Answer 14

thank you so much, you made it a lot easier to understand :)

Answer 15

i do try :) good luck

Answer 16

thank you, i am going to post some more if you can help that would be great!