Respuesta :
Answer:
Decimal total dollar denominated return is 0.50
Explanation:
The dollar purchase price of the stock =100/1.4*$1
=71.42857143 *$1
=$71.42857143
today's dollar selling price =120/1.12*$1
=107.1428571 *$1
=$107.1428571
Dollar denominated total return in money terms=$107.1428571 -$71.42857143
=$35.71428571
However the dollar-denominated return in percentage terms is computed the below formula
dollar denominated return %=(today's price-initial price)/initial price
=($107.1428571 -$71.42857143 )/$71.42857143
=0.50 which represents 50%
