You bought a stock three months ago for $79.82 per share. The stock paid no dividends. The current share price is $85.09.

Required:

What is the APR and EAR of your investment?

The 3 mo return = 85.09/79.82 - 1 = 0.066023553

So the APR = 4 * 0.066023553 = 0.264094212 or 26.41%

Assuming quarterly compounding, the EAR = (1 + APR/n) ^ n - 1 = (1 + 0.264094212/4) ^ 4 - 1 = 0.291419087 or 29.14%

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You bought a stock three months ago for $79.82 per share. The stock paid no dividends. The current share price is $85.09.

Required:

What is the APR and EAR of your investment?