Suppose You Purchase 100 Shares of Coca Cola Stock at the Beginning

question 55

Multiple Choice

Suppose you purchase 100 shares of Coca Cola 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 Coca Cola 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 Coca Cola 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
• E) More information is necessary to answer this question.

---

Definitions:

Help Home Page

The main page of a help or support section on a website or within software, providing access to guides, FAQs, and assistance tools.

Horizontal Bar

A variant of a bar chart where bars are plotted horizontally instead of vertically, often used to compare quantities.

Vertical Bar

A symbol (|) used in computing and typography as a separator between items or concepts, also known as a pipe.

Title Bar

The horizontal bar at the top of a window on a computer screen, displaying the name of the program or document being used or viewed.