Suppose you purchase 100 shares of Air NZ stock at the beginning of year 1 and purchase another 100 shares at the end of year 1. You sell all 200 shares at the end of year 2. Assume that the price of GM stock is $50 at the beginning of year 1, $55 at the end of year 1, and $65 at the end of year 2. Assume no dividends were paid on GM stock.

Select one:

a. Your dollar-weighted return on the stock will be higher than your time-weighted return on the stock.

b. Your dollar-weighted return on the stock will be the same as your time-weighted return on the stock.

c. Your dollar-weighted return on the stock will be less than your time-weighted return on the stock.

d. Your dollar-weighted return on the stock will be exactly proportional to your time-weighted return on the stock.

e. none of the options are correct.