QUESTION 17 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 (e. $1 for each share) and sell the shares for $67.20 The time-weighted return (geometric) on your investment is O 10.06%. O 8.77%. 19.73%.
QUESTION 17 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 (e. $1 for each share) and sell the shares for $67.20 The time-weighted return (geometric) on your investment is O 10.06%. O 8.77%. 19.73%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:QUESTION 17
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 (.e. $1 for each share) and sell the shares for $67.20 each
The time-weighted return (geometric) on your investment is
O 10.06%.
O 8.77%.
19.73%.
17.60%.
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