Rate of Return and Investment Size
Investor A purchases 100 shares of a company at $50 per share. Investor B purchases 200 shares of the same company at the same price of $50 per share. One year later, both investors sell all their shares for $55 per share. No payments were made to shareholders during the year. Compare the rate of return for Investor A and Investor B. Does the initial amount of money invested affect the percentage rate of return in this scenario? Explain your reasoning.
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Introduction to Macroeconomics Course
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