Suppose You Purchase One Share of the Stock of VM

question 1

Multiple Choice

Suppose you purchase one share of the stock of VM 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%.
• E) 12.35%.

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Definitions:

R

Symbol commonly representing resistance in electrical equations, measured in ohms (Ω).

RC Parallel Circuit

An electrical circuit that consists of resistors (R) and capacitors (C) connected alongside each other in parallel, allowing for AC filtering or timed circuits.

R

In electrical engineering, "R" typically refers to resistance, which is a measure of the opposition to the flow of electric current.

Apparent Power

The product of the current and voltage in an AC circuit, measured in volt-amperes, not necessarily equal to the actual power consumed.