How do you calculate an annual rate of return

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Question: Personal Finance:

How do you calculate an annual rate of return?

You buy a share of stock for $100 and it pays no dividend. A year later the market price is $105. What is the rate of return?

You buy a share of stock for $100 and a year later the market price is $105 and it pays a dividend of $2. What is the return?

Reference no: EM132032226

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