Calculate 6 month- return for an investment [closed]

Assume that the price of DF stock went from a price of $104 on March 2 to 146 on April 1. With a current stock price of 146, Invest all of your amount 14,600 in the DF stock (buy 100 shares) Calculate the payoff and 6-month return for this investment alternative by assuming that the stock price is observed to be 50 on 6 months later. —- I calculate payoff as follows $$\pi = 100* ( 50- 146)= - 9600$$ But how can I calculate the 6 month return for this investment? • Ahem, if the price goes from 146 to 50 you have a negative payoff... it is$Q (P_{final}-P_{initial})$. Then the return is$(P_{final}-P_{initial})/P_{initial}$, also negative. Apr 12 '20 at 11:16 • Oh okay I am so sorry I did typo. Thanks I correct it. Okay, 6month return calculation is =$(P_{final} - P_{initial})/P_{initial}\$ is it right? @noob2
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Apr 12 '20 at 11:47

1 Answer

Yep I would say that the payoff is accurate, and as for the return (P End - P Beginning) / P Beginning Gives the return on that asset.