The Price of Microsoft Is $37 Per Share and That

question 19

Multiple Choice

The price of Microsoft is $37 per share and that of Apple is $43 per share. The price of Microsoft increases to $42 per share after one year and to $47 after two years. Also, shares of Apple increase to $49 after one year and to $59 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) 13.06%, 14.84%
• B) 10.31%, 18.96%
• C) 13.75%, 16.48%
• D) 11.69%, 19.78%

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Definitions:

Retailer Cooperatives

Groups of independent retailers who combine their purchasing power to negotiate better prices from suppliers and improve competitiveness.

Category Management

A merchandising technique that focuses on the performance of a product category rather than individual brands.

Planned Shopping Center

A group of architecturally unique business establishments on a site that is centrally owned or managed.

Big Data Analytics

The process of examining large and varied data sets, or big data, to uncover hidden patterns, correlations, market trends, and customer preferences.