Compute the capital gains or loss percentage if you invested

Compute the capital gains (or loss) percentage if you invested in the following stocks on January 3, 2007 and held them until March 9^th, 2009: IBM, Johnson and Johnson (JNJ), Citigroup (C), JPMorgan (JPM), and Freddie Mac.

Get the information by going to http://finance.yahoo.com/. Write the ticker symbols (e.g. JNJ) in the GET QUOTES box. Click on GET QUOTES. The current quote for that stock should be shown at this point. Look on the left side of the screen under Quotes summary, click on historical prices. You will see where you may select the dates that you need. You are looking for two daily prices for each stock; one for January 3, 2007 -

and one for March 9^th, 2009.

IBM J&J Citi JPM Freddie Mac

Could you explain the formula?

Solution

capital gains %=price on 9/3/2009 / price on 3/1/2007 -1

IBM:
=83.48/97.27-1=-14.177%
J&J:
=46.6/66.4-1=-29.819%
I think the prices mentioned for Citi, JPM, Freddie Mac are incorrect.
The prices on 9/3/2009 are after stock split and not taking account of stock split

Citi:
=10.5/552.5-1=-98.1%
JPM:
=15.9/48.19-1=-67%
Freddie Mac:
=0.37/67.89-1=-99.455%