Question

Stacey purchased 300 shares of Coulter Industries stock and held it for 4 months before reselling it.

Answer 1

Answer:

The value of m is Three (3)

Explanation:

The annualized return or annual return on investment s the percentage that tells you how much an investment has increased in value on average per year over a period of time.

Annual return can be a preferable metric to use over simple return when you want to evaluate how successful an investment has been or to compare the returns of two investments you've held over different time frames on equal footing.

Now, to calculate the annual returns,

We look up the current price and  purchase price.

If the stock has undergone any splits, make sure the purchase price is adjusted for splits. If it isn't, you can adjust it yourself. For example, if you held a stock for 4 years, during which time it has had a 2:1 and a 3:1 split, then you can calculate your split-adjusted purchase price by dividing your purchase price by 6 (2 x 3).

Then we calculate the simple return percentage

After which we go ahead to annualize it.