Multiple Choice
Which of the following is more appealing? Why?
Stock X bought at $34 a share and sold for $36 in three months.
Stock Y bought at $120 a share and sold for $130 in six months.
No dividend is paid for either stock.
A) Y as it has a higher holding period percentage return
B) X because of the lower investment cost
C) X due to its higher effective annual return
D) Y since it provides a better dollar return
E) X and Y are equally attractive
Correct Answer:

Verified
Correct Answer:
Verified
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