# Suppose you purchase one share of the stock of

• shairrrr
• 53

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 14 - 15 out of 53 pages.

Suppose you purchase one share of the stock of Volatile Engineering Corporation at thebeginning of year 1 for \$36. At the end of year 1, you receive a \$2 dividend and buy onemore share for \$30. At the end of year 2, you receive total dividends of \$4 (i.e., \$2 for eachshare) and sell the shares for \$36.45 each. The time-weighted return on your investment is
Suppose you purchase one share of the stock of Volatile Engineering Corporation at thebeginning of year 1 for \$36. At the end of year 1, you receive a \$2 dividend and buy onemore share for \$30. At the end of year 2, you receive total dividends of \$4 (i.e., \$2 for eachshare) and sell the shares for \$36.45 each. The dollar-weighted return on your investment is
Suppose you purchase one share of the stock of Cereal Correlation Company at thebeginning of year 1 for \$50. At the end of year 1, you receive a \$1 dividend and buy onemore share for \$72. At the end of year 2, you receive total dividends of \$2 (i.e., \$1 for eachshare) and sell the shares for \$67.20 each. The time-weighted return on your investment is
Suppose you purchase one share of the stock of Cereal Correlation Company at thebeginning of year 1 for \$50. At the end of year 1, you receive a \$1 dividend and buy onemore share for \$72. At the end of year 2, you receive total dividends of \$2 (i.e., \$1 for eachshare) and sell the shares for \$67.20 each. The dollar-weighted return on your investment is
Suppose you own two stocks, A and B. In year 1, stock A earns a 2% return and stock Bearns a 9% return. In year 2, stock A earns an 18% return and stock B earns an 11% return.__________ has the higher arithmetic average return.
Suppose you own two stocks, A and B. In year 1, stock A earns a 2% return and stock Bearns a 9% return. In year 2, stock A earns an 18% return and stock B earns an 11% return.Which stock has the higher geometric average return?

Course Hero member to access this document

Course Hero member to access this document

End of preview. Want to read all 53 pages?

Course Hero member to access this document

Term
Fall
Professor
N/A
Tags
William Sharpe