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Suppose you purchase one share of the stock of VM Corporation at the beginning of year 1 for $36. At the end of year 1

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Suppose you purchase one share of the stock of VM Corporation at the beginning of year 1 for $36. At the end of year 1 , you receive a $2 dividend and buy one more share for $30. At the end of year 2 , you receive total dividends of $4 (i.e., $2 for each share) and sell the shares for $36.45 each. The dollar-weighted return on your investment is 1) 1.75% 2) 12.35% 3) 8.53% 4) 4.08% 5) 8.00%

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