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31 August, 15:54

If you buy a stock for $100, receive a $2 dividend and then sell the stock for $90, what is the total return from your investment (in percentage terms) ?

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  1. 31 August, 17:09
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    -8%

    Explanation:

    For computing the total return from your investment, first we have to determine the return from investment which is shown below:

    Return on investment = Total inflow - total outflow

    where,

    Total inflow = $90 + $2 = $92

    And, the total outflow = $100

    So, Return on investment would be - $8

    Now the Return on investment in percentage would be

    = Return on investment : investment * 100

    = - $8 : $100 * 100

    = - 8%
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