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%