Henry Purchased Stock in Nortel Networks for $120 Per Share

question 104

Multiple Choice

Henry purchased stock in Nortel Networks for $120 per share.Unfortunately the stock did not perform very well in the 3 years that Henry has owned it as it is now trading at $3.93 per share.Feeling that the value of the stock will only continue to drop,Henry sold his shares today.What annual rate of return did Henry make on his investment?

• A) -68%
• B) -66%
• C) -67%
• D) -69%
• E) -70%

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Definitions:

Ruminate

To think deeply about something, often in a repetitive or ponderous way.

Arguments

Exchanges of divergent or opposite views, typically a series of reasons or evidence in support of and against a proposition.

Reduced

Made smaller or less in amount, degree, or size.

Work

Engaging in physical or mental activities to achieve a purpose or result, often related to earning a living or contributing to society.