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Greg purchased stock in Bear Stearns and Co. at a price of $89 per share one yea

ID: 2701768 • Letter: G

Question

Greg purchased stock in Bear Stearns and Co. at a price of $89 per share one year ago. The company was acquired by JP Morgan at a price of $10 per share. What is Greg's return on his investment? a

-88.76% b

-96.25% c

-79.00% d

-85.45% Greg purchased stock in Bear Stearns and Co. at a price of $89 per share one year ago. The company was acquired by JP Morgan at a price of $10 per share. What is Greg's return on his investment? Greg purchased stock in Bear Stearns and Co. at a price of $89 per share one year ago. The company was acquired by JP Morgan at a price of $10 per share. What is Greg's return on his investment? -88.76% -96.25% -79.00% -85.45% a

-88.76% b

-96.25% c

-79.00% d

-85.45%

Explanation / Answer

Gregg's return = (10-89)/89 = -88.76%