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CFA Institute Exam CFA-Level-I Topic 1 Question 5 Discussion

Actual exam question for CFA Institute's CFA-Level-I exam
Question #: 5
Topic #: 1
[All CFA-Level-I Questions]

Assume an investor makes the following investments:

During year one, the stock paid a $5.00 per share dividend. In year 2, the stock paid a $7.50 per share dividend. The investor’s required return is 35.0 percent.

The dollar-weighted return is:

Show Suggested Answer Hide Answer
Suggested Answer: A

Contribute your Thoughts:

Yvonne
1 months ago
This question is making my head spin like a fidget spinner. But I'm pretty sure the answer is C. 46.5%. Gotta love those tricky finance questions!
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Denny
5 days ago
I agree, C) 46.5% makes sense based on the investor's required return and the dividends received.
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Jessenia
8 days ago
Yeah, that calculation was a bit tricky, but C) 46.5% seems to be the correct answer.
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Chan
9 days ago
I think you're right, the answer is C) 46.5%.
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Curt
1 months ago
But the required return is 35.0 percent, so the answer should be A) 48.9%.
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Krystal
2 months ago
I disagree, I believe the answer is C) 46.5%.
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Ashley
2 months ago
D. 102.4%? That can't be right. The dividends and required return don't add up to that high of a return. I'm going with C.
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Glenn
18 days ago
I agree with you, C seems like the most logical choice based on the information given.
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Ilona
19 days ago
I'm not so sure, I still think D could be a possibility.
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Candra
23 days ago
I think you might be right, C does seem like a more reasonable option.
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Curt
2 months ago
I think the answer is A) 48.9%.
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Owen
2 months ago
Hmm, I'm not sure about this one. The dividends and required return seem a bit high. Maybe A or B is the correct answer?
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Timothy
30 days ago
I don't think D) 102.4% is the correct answer based on the information given.
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Cathern
1 months ago
I'm not sure either, but C) 46.5% could be a possibility.
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Denise
1 months ago
I'm leaning towards B) 16.1% as the correct answer.
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Mauricio
2 months ago
I think the answer might be A) 48.9%.
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Marg
2 months ago
The answer has to be C. 46.5%. The dividends and required return give us enough information to calculate the dollar-weighted return.
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Roxane
2 months ago
No, I believe it's C) 46.5%.
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Dierdre
2 months ago
I think the answer is A) 48.9%.
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