Paula bought a stock for $200 last year and sold it today for $150. If she earned a dividend of $100 while she held the stock her rate of return was
A) -50%.
B) -25%.
C) 25%.
D) 33.33%.
E) 50%.

The rate of return (RoR) is a method for estimating an investment's long-term profit or loss. Shares, bonds, real estate, and fine art are just a few of the assets that can be analyzed using the RoR statistic.

The formula for rate of return is

Rate of return= Current value- Initial value/ Initial value *100

Current value of the stock is the value at which it is sold and the dividend she received, in the given question it is $150+$100=$250.

Rate of return= $250-$200/$200*100

Rate of return=$50/$200*100

Rate of return=0.25*100

Rate of return=25%.

Therefore, option c is the correct answer.

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Paula bought a stock for $200 last year and sold it today for $150. If she earned a dividend of $100 while she held the stock her rate of return was A) -50%. B) -25%. C) 25%. D) 33.33%. E) 50%.

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What is rate of return?

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Paula bought a stock for $200 last year and sold it today for $150. If she earned a dividend of $100 while she held the stock her rate of return was
A) -50%.
B) -25%.
C) 25%.
D) 33.33%.
E) 50%.