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18 August, 05:22

Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $50. At the end of year 1, you receive a $1 dividend and buy one more share for $72. At the end of year 2, you receive total dividends of $2 (i. e., $1 for each share) and sell the shares for $67.20 each. The time-weighted return on your investment is

a. 8.7%.

b. 17.6%.

c. 10.0%.

d. 19.7%.

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  1. 18 August, 05:28
    0
    B the answer is going to be
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