Suppose you purchase one share of the stock of Volatile Engineering 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 time-weighted return on your investment is
A. -1.75%.
B. 4.08%.
C. 6.74%.
D. 11.46%.
E. 12.35%.
C. 6.74%.
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