Suppose You Purchase 100 Shares of GM Stock at the Beginning

question 13

Multiple Choice

Suppose you purchase 100 shares of GM stock at the beginning of year 1 and purchase another 100 shares at the end of year 1.You sell all 200 shares at the end of year 2.Assume that the price of GM stock is $50 at the beginning of year 1, $55 at the end of year 1, and $65 at the end of year 2.Assume no dividends were paid on GM stock.Your dollar-weighted return on the stock will be __________ your time-weighted return on the stock.

• A)higher than
• B)the same as
• C)less than
• D)exactly proportional to

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Definitions:

Group Development

The stages that a group goes through from its formation to achieving high levels of performance and cohesion.

Consultative Leaders

Leaders who tend to delegate authority and confer with others in making decisions, but who makes the actual decisions independently.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.

Creativity

Creativity is the ability to produce original, diverse, and valuable ideas or solutions.