Suppose You Purchase One Share of the Stock of Volatile

question 33

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)8.53%
• D)11.46%
• E)12.35%

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Definitions:

Knowledge Of The Business

An understanding of the key factors that make an organization or industry operate effectively, including its products, market, and competitive landscape.

Leadership Characteristic

An inherent trait or quality that enhances an individual's ability to lead effectively.

Staff Specialists

Employees with expert knowledge or skills in a specific field who provide advice and services to support the organization's objectives.

Internal Locus

The belief that one is in control of their life and outcomes, as opposed to external forces having that control.