Answer:
-$100
Explanation:
Given that,
Initially, the selling price of a stock = $800
After one year, the selling price of a stock decreases to $700.
Dividends paid = $0
Dollar return:
= Ending selling price - Beginning selling price + Dividends paid
= $700 - $800 + $0
= (-$100)
Therefore, the dollar return on investment in this stock is (-$100). Investment is said to have a negative rate of return.
