The Price of Microsoft Is $40 Per Share and That

question 89

Multiple Choice

The price of Microsoft is $40 per share and that of Apple is $45 per share.The price of Microsoft increases to $45 per share after one year and to $50 after two years.Also,shares of Apple increase to $50 after one year and to $60 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)11.21%,14.53%
• B)9.91%,17.96%
• C)11.76%,15.79%
• D)10.05%,18.76%

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Definitions:

Crescent Shapes

Forms or structures that are shaped like a crescent moon, often found in dune and ripple markings.

Loess Deposits

Fine-grained, wind-blown sediments that can form thick, fertile soil layers.

Sediment

Particulate organic and inorganic matter that accumulates in a solid layer on the surface of land or within bodies of water.

Air Currents

Movements of air resulting from differences in air temperature and pressure, contributing to weather patterns and climactic conditions globally.