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:

Mirror Neurons

Neurons that fire both when an individual acts and when the individual observes the same action performed by another.

Empathic Husband

A spouse who understands and is sensitive to their partner's feelings, thoughts, and experiences from the partner's point of view.

Violence-Viewing Effect

This refers to the increased aggression and desensitization to violence observed in individuals after they have been exposed to violent media.

Visible Harm

Physical or emotional damage that is noticeable or able to be seen.