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Average annual rate of return

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In November of 1998 you bought 100 shares of Microsoft stock for $35.375 a share. In November of 2000, hearing about an unfavorable ruling against Microsft by a federal judge, you sold your stock at $92.5625 a share. What was your average annual rate of return on your Microsoft investment?

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The response provides you a structured explanation of a simple stock valuation method. It also gives you the relevant references.

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Your purchase price of the shares is $35.375. After two years you get $92.5625. The total increase in value is $57.1875.

This increase is ...

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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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