An investor is thinking about buying some shares of Computer Engines,Inc., at $60 a share. she expect the price of the stock to rise to $100 a share over the next 3 years. What rate of return can she expect to earn on this investment?

An investor is thinking about buying some shares of computer

The rate of return for the investor can be calculated using the following formula:

Rate of Return = (Future Price – Initial Price + Dividend) / Initial Price

In this case, the initial price is $60 per share and the future price is expected to be $100 per share. The dividend payments for each year are expected to be $3 per share. Using this information, we can calculate a rate of return as follows:

Rate of Return = ($100 – $60 + $3) / $60 = 10%

Therefore, if all expectations hold up, the investor can expect to earn a 10% rate of return over a 3-year period on her investment in Computer Engines, Inc.