Suppose You Purchase One Share of the Stock of Cereal

question 16

Multiple Choice

Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $50. At the end of year 1, you receive a $1 dividend and buy one more share for $72. At the end of year 2, you receive total dividends of $2 (i.e., $1 for each share) and sell the shares for $67.20 each. The dollar-weighted return on your investment is

• A) 10.00%.
• B) 8.78%.
• C) 19.71%.
• D) 20.36%.

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Definitions:

Social Skills

The abilities necessary to communicate, interact, and foster relationships effectively with others.

Impaired Verbal Communication

A condition where an individual has difficulty in expressing thoughts and ideas clearly through spoken words.

Repeated Efforts

Continuous attempts or actions taken to accomplish a particular goal or overcome obstacles.

Eye Contact

The act of two individuals looking into each other's eyes, which can convey various emotions and social signals.