Question

PLEASE HELP! FAN AND MEDAL!!

Last year, Nolan purchased 48 shares of Stock A at $59 per share, and a four-year $5500bond with 10.12% coupon for $4750. Nolan sold both stocks today. Stock A is worth $65 per share and Stock B has a value of $74 per share. Assuming neither stock paid a dividend, which investment has the highest rate of return?

Answer 1

Stock A increased in price by $288. Bond increased in price by $750. Stock B increased in price by 936.
a=48; b=104;
(74b-65b) > 5500-4750 > (65-59b)

Answer 2

my answer options are
Stock A
Stock B
Bond
or Both Stock A and Stock B

Answer 3

@TwinYang

Answer 4

my guess is Stock B

Answer 5

thank you!

Answer 6

@TwinYang