The price of a share is ₹100 today. It grows to ₹125 at the end of the 1st year, ₹187.5 at the end of the 2nd year and ₹243.75 at the end of the 3rd year. What is the average rate of return ?

CS Executive · Financial and Strategic Management · PYQS · December 2019
The price of a share is ₹100 today. It grows to ₹125 at the end of the 1st year, ₹187.5 at the end of the 2nd year and ₹243.75 at the end of the 3rd year. What is the average rate of return ?
(A) 35.5%
(B) 35%
(C) 34.5%
(D) 34%

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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