Suppose You Purchase One Share of the Stock of Volatile

question 62

Multiple Choice

Suppose you purchase one share of the stock of Volatile Engineering Corporation at the beginning of year 1 for $36. At the end of year 1, you receive a $2 dividend and buy one more share for $30. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share) and sell the shares for $36.45 each. The dollar-weighted return on your investment is

• A) -1.75%.
• B) 4.08%.
• C) 8.53%.
• D) 8.00%.
• E) 12.35%.

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Definitions:

Nucleophilic Acyl Substitution

A reaction mechanism in which a nucleophile displaces a leaving group attached to an acyl compound, forming a new covalent bond.

Carboxylic Acid Derivatives

A group of organic compounds, including esters, amides, and acid halides, derived from carboxylic acids by replacement of the hydroxyl group with other functional groups.

Laboratory Conditions

Specific, controlled parameters under which scientific experiments are conducted to ensure accuracy and repeatability.

Nucleophilic Attack

A type of chemical reaction where an electron-rich nucleophile targets and binds to an electron-deficient atom, typically carbon.