The share price of a company has increased from $75.00 to $82.50 over the past two years. How much has the share price gained on a percentage basis?

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Multiple Choice

The share price of a company has increased from $75.00 to $82.50 over the past two years. How much has the share price gained on a percentage basis?

Explanation:
The key idea is computing percentage change: see how much the price has risen relative to the starting price. The increase is 82.50 − 75.00 = 7.50. Divide by the initial price: 7.50 ÷ 75.00 = 0.10. Multiply by 100 to express it as a percentage: 10%. So the share price gained 10% over the two-year period. The two-year span doesn’t alter the calculation; if you were asked for an annual rate, you’d annualize it, which would be about 4.9% per year using CAGR.

The key idea is computing percentage change: see how much the price has risen relative to the starting price. The increase is 82.50 − 75.00 = 7.50. Divide by the initial price: 7.50 ÷ 75.00 = 0.10. Multiply by 100 to express it as a percentage: 10%.

So the share price gained 10% over the two-year period. The two-year span doesn’t alter the calculation; if you were asked for an annual rate, you’d annualize it, which would be about 4.9% per year using CAGR.

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