Suppose an investor purchases 100 shares in Company X at $50 per share. After one year, the price for each share increases to $60 per share. Using the above formula, calculate the absolute return on the investment:
Initial Investment: 100 shares x $50 = $5,000
Value After One Year: 100 shares × $60 = $6,000
Absolute Return = ($6,000 - $5,000) / $5,000 × 100 = 20%
Therefore, the ab... https://finxl.in/advanced-financial-planning-and-analysis-course.html