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:

Cerebral Aqueduct

A narrow channel within the brain that connects the third and fourth ventricles, allowing for the flow of cerebrospinal fluid.

Pons

A part of the brainstem that links the medulla oblongata and the thalamus, playing a crucial role in sleep and dreaming.

Choroid Plexus

Specialized tissue in the ventricles of the brain that produces cerebrospinal fluid, playing a key role in protecting and nourishing the brain and spinal cord.

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, acting as a cushion and delivering nutrients to the central nervous system while removing waste.