12
QuizMultiple Choice

Investments — Test

Question 12 • Financial Math

Reggie buys a stock for $⁢50 per share and sells it a year later for $⁢75 per share. If he bought 100 shares, what is his return on investment (ROI)? Use the formula ROI=((final value−initial value)/(initial value))×100

Answer
A
100 percent
B
25 percent
C
75 percent
D
50 percent

Explanation

The initial investment is 100 × $50 = $5,000, and the final value is 100 × $75 = $7,500. The gain is $7,500 − $5,000 = $2,500, so ROI = ($2,500 ÷ $5,000) × 100 = 50 percent. The correct choice is 50 percent.

AI-written and checked against the verified answer.

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