Answer:
-46.91%
Step-by-step explanation:
Given:
Cost of buying the shares = $53,500
Selling cost of the shares = $3,300
Number of years = 2
Since the selling cost is less than the buying cost, therefore the statement for the loss can be verified
Now,
The loss = Selling cost - cost of buying = $3,300 - $53,500 = - $50,200
thus, the loss per year = [tex]\frac{\textup{50,200}}{\textup{2}}[/tex] = -$25100
Hence,
Rate of return = [tex]\frac{\textup{Loss per year}}{\textup{Cost of buying}}\times100[/tex]
or
Rate of return = [tex]\frac{\textup{-25100}}{\textup{53,500}}\times100[/tex]
or
Rate of return = -46.91%
