the ration of change in the dollar value of a security to it

the ration of change in the dollar value of a security to its initial value

Solution

The ratio of change in the dollar value of a security to its initial value is known as Rate of return on Security.

For example:- Intial value of security = $ 5 and later value of security = $ 10.

   Rate of return on security = [10 - 5 / 5] * 100

= 5 / 5 * 100

= 100 %