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:

Callout

An annotation on a drawing, usually detailing information of a specific feature, dimension, or instruction.

Field Welds

Welds performed at the construction site rather than in the workshop or factory, typically for assembling large structures.

Symbol

A token, figure, or word that denotes, symbolizes, or is perceived as characterizing a thought, object, or bond.

Center-To-Center Spacing

The distance measured from the center of one feature (such as a hole or pin) to the center of another, critical for part alignment and assembly.