Suppose you purchase one share of the stock of Hectic Engineering at the beginning of year 1 for $25. At the end of year 1, you receive a $1 dividend and buy one more share for $22. At the end of year 2, you receive total dividends of $4 (i.e. $2 for each share) and sell the shares for $24 each. The geometric average return on your investment is

Select one:

3.75%

2.35%

4.27%

-4.46%

-3.75%

Thank you!!