The Price of Microsoft Is $30 Per Share and That

question 102

Multiple Choice

The price of Microsoft is $30 per share and that of Apple is $58 per share. The price of Microsoft increases to $39 per share after one year and to $42 after two years. Also, shares of Apple increase to $66 after one year and to $71 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) 19.32%, 7.62%
• B) 28.01%, 8.38%
• C) 23.18%, 11.43%
• D) 22.22%, 13.71%

---

Definitions:

Organizational Growth

The process through which a business expands its size, scope, or capabilities, often measured in terms of increased output, sales, or market share.

Entrepreneur

An individual who starts and runs a business, taking on financial risks with the aim of making a profit.

Matrix Structure

An organizational configuration that combines elements of both functional and divisional structures, allowing for flexibility and efficient resource utilization by having employees report to multiple managers.

Functional Managers

Managers responsible for specific business functions that provide guidance and resources to ensure organizational goals are met.