13
QuizMultiple Choice

Variable Investments — Quiz

Question 13 • Financial Math

Shirley buys a stock for $⁢80 per share and sells it a year later for $⁢50 per share. If she bought 150 shares, what is her return on investment (ROI)? Use the formula ROI=((final value−initial value)/(initial value))×100

Answer
A
negative 50 percent
B
negative 37 point 5 percent
C
negative 62 point 5 percent
D
negative 25 percent

Explanation

The initial value is 150 × $80 = $12,000, and the final value is 150 × $50 = $7,500. Using the formula, ROI = (($7,500 − $12,000) ÷ $12,000) × 100 = −37.5%. The correct choice is negative 37.5 percent.

AI-written and checked against the verified answer.

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