1. For each scenario, indicate whether the price of the stock appreciates or depreciates, and calculate your investment return.
Instructions: Enter your responses for the returns rounded to two decimal places. If entering a negative number, be sure to use a negative (-) sign.
a) In February 2016 you purchased a share of McDonald's stock at $121.72. In February 2017 it was worth $125.82, and McDonald's declared a $0.94 dividend.
Did the price of the stock appreciate or depreciate? (appreciate or depreciate)
What was your return? ___%
b) In October 2016 you purchased 100 shares of Yahoo stock $32.15 per share. The current price of Yahoo stock is $33.43.
Did the price of the stock appreciate or depreciate? (appreciate or depreciate)
What was your return? ___%
c) In March 2016 you purchased 500 shares of Alibaba for $105.55 per share. In March 2017 the price of Alibaba was $102.63.
Did the price of the stock appreciate or depreciate? (appreciate or depreciate)
What was your return? ___%