stocks/yield on investment/net investment

Question

1. A man invested in 500 shares of a local business stock selling for $15.75 a share. A while later he sold half of his shares at $17.25. Calculate his investment rate of return and his capital gain.

 

2. An investor pays $65 plus .00675 on her investment of $3,000. She plans to purchase whatever she can get of the stock of Exercise 1 priced at $15.75. Find the net investment and how many shares she is able to purchase. Also calculate the yield on investment.

Answer 1

Hey C -- (1) made $1.50 on 250sh for cap gain of $375 ... %return is the 1.50 made on cost basis of 15.75 -- a bit less than 10% (2) looks like 2/3% fee on $3k or $20 ... also knock off $65 leaving $2915 to buy the shares 40sh @630 160sh @2520 180sh @2835 $80 left for 5sh ==> buy about 185sh ...