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 dollar-weighted return on your investment is

• A) -1.75%.
• B) 4.08%.
• C) 8.53%.
• D) 8.00%.
• E) 12.35%.

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Definitions:

Donation Amounts

The specific quantities or sums of money given as contributions to charitable organizations or causes.

Philanthropy

Voluntary activities and donations aimed at improving the well-being of humanity and addressing social issues.

Prosocial Behavior

Voluntary actions intended to benefit or help others without expecting reward.

Distress

Extreme anxiety, sorrow, or pain, often resulting from situations of stress or trauma.