Suppose You Purchase One Share of the Stock of Volatile

question 62

Multiple Choice

Suppose you purchase one share of the stock of Volatile Engineering Corporation at the beginning of year 1 for $36.At the end of year 1, you receive a $2 dividend and buy one more share for $30.At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share) and sell the shares for $36.45 each.The time-weighted return on your investment is

• A)-1.75%.
• B)4.08%.
• C)6.74%.
• D)11.46%.

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Definitions:

Silvery Scales

often describes skin conditions or features of animals where the skin or outer covering appears shiny and flake-like.

Basal Cell Carcinoma

A type of skin cancer that begins in the basal cells—cells within the skin that produce new skin cells as old ones die off.

Squamous Cell Carcinoma

A type of skin cancer that arises from the squamous cells, which are flat cells found in the outer layer of the skin.

Melanoma

Melanoma is a serious form of skin cancer that arises from pigment-producing cells known as melanocytes.