Suppose You Purchase One Share of the Stock of Cereal

question 27

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 time-weighted return on your investment is

• A) 10.0%.
• B) 8.7%.
• C) 19.7%.
• D) 17.6%.

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Definitions:

Sexual Abuse

Sexual abuse refers to non-consensual sexual activity or behavior imposed on one individual by another.

Psychodynamic Theory

A perspective in psychology that emphasizes unconscious processes and childhood experiences in shaping personality and behavior.

Neurotic Behavior

Patterns of thought, feeling, or behavior characteristic of people experiencing emotional distress or mental illness.

Libido

A term used in psychoanalytic theory to denote the sexual drive or desire.