The Price of Microsoft Is $35 Per Share and That

question 54

Multiple Choice

The price of Microsoft is $35 per share and that of Apple is $60 per share.The price of Microsoft increases to $37 per share after one year and to $40 after two years.Also,shares of Apple increase to $65 after one year and to $70 after two years.If your portfolio comprises 100 shares of each security,what is your portfolio return in year 1 and year 2? Assume no dividends are paid.

• A)7.37%,7.84%
• B)11.21%,8.81%
• C)9.62%,11.34%
• D)9.01%,13.62%

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Definitions:

Technology Adoption

The process by which individuals and businesses start using new technologies or upgrade to more advanced technological systems.

Private Channels

Means of communication or distribution that are owned, controlled, or operated by private entities, not accessible by the general public or restricted in access.

Human Capital

The combined abilities, expertise, and other non-material assets possessed by people that can be leveraged to generate economic benefits for themselves, their workplace, or the society.

Free Markets

Economic systems where transactions are conducted without significant government intervention, allowing for the free exchange of goods and services based on supply and demand.