A business person invested $3600.00 in stock

## Investment Performance Analysis

### Investment Overview

A business person invested $3600.00 in stock on January 1, 2023, with the expectation of earning a return on their investment over time. This report analyzes the investment’s performance over a one-year period, from January 1, 2023, to December 31, 2023.

### Stock Price History

The stock price fluctuated throughout the year, with the following key events:

* **January 1, 2023:** Initial investment price: $36.00 per share
* **March 1, 2023:** Stock split 2:1, reducing the share price to $18.00 per share
* **June 1, 2023:** Quarterly dividend of $0.25 per share
* **September 1, 2023:** Stock price peak of $22.00 per share
* **December 31, 2023:** Closing stock price: $20.00 per share

### Investment Returns

**Capital Gains:**

* Initial investment: 100 shares at $36.00 per share = $3600.00
* Closing value: 200 shares (after stock split) at $20.00 per share = $4000.00
* Capital gain: $400.00

**Dividends:**

* Quarterly dividend: $0.25 per share
* Number of dividend payments: 4
* Total dividends received: $20.00

**Total Return:**

* Capital gain: $400.00
* Dividends: $20.00
* Total return: $420.00
* Percentage return: 11.67%

### Investment Performance Metrics

| Metric | Calculation | Value |
|—|—|—|
| Percentage return | (Total return / Initial investment) x 100 | 11.67% |
| Annualized return | (Total return / Initial investment) ^ (1 / Years) — 1 | 11.67% |
| Sharpe ratio | (Excess return / Standard deviation) | N/A (insufficient data) |
| Beta | N/A (insufficient data) |

### Risk Assessment

Due to the limited data available for a one-year period, a comprehensive risk assessment is not possible. However, the following observations can be made:

* The stock price fluctuated significantly, reaching a peak of $22.00 per share and a low of $18.00 per share.
* The annualized return of 11.67% is a reasonable return for a stock investment, considering the market conditions during 2023.

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### Conclusion

The business person’s investment in stock yielded a total return of $420.00, representing an annualized return of 11.67%. While the stock price experienced some volatility throughout the year, the overall performance was positive. Based on the limited data available, the investment appeared to be relatively low-risk and provided a satisfactory return.

### Recommendations

For future investments, the business person is advised to consider the following recommendations:

* **Diversify investments:** Invest in a variety of stocks and other asset classes to reduce risk.
* **Monitor investments regularly:** Track stock prices and company performance to make informed decisions.
* **Consider long-term investments:** Stock investments typically require a long-term perspective to achieve optimal returns.
* **Consult a financial advisor:** Seek professional advice to develop a personalized investment strategy that aligns with specific financial goals and risk tolerance.

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