Suppose You Purchase One Share of the Stock of Mayfair

Multiple Choice

Suppose you purchase one share of the stock of Mayfair Company at the beginning of year 1 for $50. At the end of year 1, you receive a $1 dividend and buy one more share for $72. At the end of year 2, you receive total dividends of $2 (i.e., $1 for each share) and sell the shares for $67.20 each. The dollar-weighted return on your investment is

A) 10.00%.
B) 8.78%.
C) 19.71%.
D) 20.36%.