Henry purchased stock in Nortel Networks for $120 per share.Unfortunately the stock did not perform very well in the 3 years that Henry has owned it as it is now trading at $3.93 per share.Feeling that the value of the stock will only continue to drop,Henry sold his shares today.What annual rate of return did Henry make on his investment?
A) -68%
B) -66%
C) -67%
D) -69%
E) -70%

Question

Quizplus · Accepted Answer

i = 11ea7fdb_fc28_3422_a768_d3eaee2b47ee_TB2902_00 - 1
i = 11ea7fdb_fc28_3423_a768_1509f3a459ac_TB2902_00 - 1 = -68%
Using a financial calculator:
N = 3, PV = -120, PMT = 0, FV = 3.93, cpt I/Y = -68%

Henry Purchased Stock in Nortel Networks for $120 Per Share