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You bought a stock six months ago for $74.82 per share. The stock paid no dividends. The current share price is $77.59. What is the APR and EAR of your investment

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Tundexi

Answer:

7.40%, 7.536%

Explanation:

i. Percentage returns = (end value-Beginning value) / Beginning value

=(77.59-74.82) / 74,82

=3.70%

Hence APR = 3.70*2 (since six months is the period)

=7.40%

ii. EAR = (1.037^2) - 1

=1.075369 - 1

=0.075369  

=7.536%

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