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Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $42.75. At the end of year
Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $42.75. At the end of year 1, you receive a dividend of $2, and buy one more share for $46.75. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share), and sell the shares for $54.75 each.
What is the time-weighted return on your investment? %
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