The Price of Microsoft Is $25 Per Share and That

question 88

Multiple Choice

The price of Microsoft is $25 per share and that of Apple is $50 per share. The price of Microsoft increases to $36 per share after one year and to $41 after two years. Also, shares of Apple increase to $56 after one year and to $66 after two years. If your portfolio comprises 100 shares of each security, what is your portfolio return over year 1 and year 2? Assume no dividends are paid.

• A) 21.53%, 14.67%
• B) 22.67%, 16.30%
• C) 24.93%, 18.75%
• D) 22.21%, 18.26%

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Definitions:

Wheel of Innovation

A conceptual model outlining the cyclical process of innovation, from idea generation through to implementation and market introduction.

Experimenting

The process of carrying out trials or tests to discover, prove, or evaluate the effectiveness or truth of something.

Feasibility

The measure of how possible or practical the implementation of a project, plan, or process is, usually considering economic, technical, and logistical factors.

Carbon Reduction

The process or strategies aimed at decreasing carbon dioxide emissions to mitigate climate change.