What Would Be the Annual Compound Return on a Stock

question 70

Multiple Choice

What would be the annual compound return on a stock purchased at $20 per share, held for 5 years, and sold for $32.22? Ignore brokerage commissions and tax implications and assume the stock paid no dividends during the holding period. Round to the nearest whole percent if necessary.

• A) 3%
• B) 10%
• C) 15%
• D) 16%

---

Definitions:

Frustrated

The feeling of being upset or annoyed as a result of being unable to change or achieve something.

Angry

A powerful sense of irritation, dissatisfaction, or antagonism.

Attentive Parents

Caregivers who are highly watchful, responsive, and engaged in their children's lives, supporting their emotional and developmental needs.

Spoiled

Often refers to a situation where an individual, usually a child, is overindulged or receives excessive material gifts, leading to entitled or problematic behavior.