Mark uses his own funds to purchase a stock priced at $70. He thinks he can sell the stock for $100 after one year. What is Mark's estimated return on the stock?
A)30.00 percent
B)- 42.86 percent
C)- 30.00 percent
D)42.86 percent
E)None of these are correct.

Question

Quizplus · Accepted Answer

Mark's estimated return on the stock is calculated as the profit divided by the purchase price. The profit is $100 - $70 = $30. The return is $30 / $70 = 0.4286, or 42.86 percent.

Mark Uses His Own Funds to Purchase a Stock Priced