{"id":217485,"date":"2025-05-22T04:00:14","date_gmt":"2025-05-22T04:00:14","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=217485"},"modified":"2025-05-22T04:00:17","modified_gmt":"2025-05-22T04:00:17","slug":"you-buy-the-stock-of-four-consumer-goods-companies-in-march-2014-and-hold-them-for-five-years-until-march-2019","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/05\/22\/you-buy-the-stock-of-four-consumer-goods-companies-in-march-2014-and-hold-them-for-five-years-until-march-2019\/","title":{"rendered":"You buy the stock of four consumer goods companies in March 2014 and hold them for five years until March 2019."},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">You buy the stock of four consumer goods companies in March 2014 and hold them for five years until March 2019. Here are the TRA (Total Return) charts from Bloomberg for all four stocks. The &#8220;Buy Price&#8221; in the top left-hand corner is the price you paid for each stock. The price of the stock in March 2019 is noted in the<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A) Unilever<br>B) Colgate-Palmolive<br>C) Kimberly-Clark<br>D) Church &amp; Dwight<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-0-color\">The Correct Answer and Explanation is:<\/mark><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To determine which stock was the best investment over the five-year period from March 2014 to March 2019, we must analyze the <strong>Total Return Analysis (TRA)<\/strong> chart data. TRA includes both <strong>price appreciation<\/strong> and <strong>dividends reinvested<\/strong>, providing a full picture of investor return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Assuming you\u2019ve seen the Bloomberg TRA charts for the following four consumer goods companies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>A) Unilever<\/strong><\/li>\n\n\n\n<li><strong>B) Colgate-Palmolive<\/strong><\/li>\n\n\n\n<li><strong>C) Kimberly-Clark<\/strong><\/li>\n\n\n\n<li><strong>D) Church &amp; Dwight<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s now determine the best performing stock.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Correct Answer: <strong>D) Church &amp; Dwight<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">Explanation:<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Church &amp; Dwight<\/strong> delivered the <strong>highest total return<\/strong> from March 2014 to March 2019 among the four companies listed. This company is known for its household brands like Arm &amp; Hammer and OxiClean. Over the five-year holding period, Church &amp; Dwight experienced strong stock price appreciation and consistent dividend growth. Its focus on niche consumer products with brand loyalty and cost-effective manufacturing gave it a competitive edge.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s briefly compare the others:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Unilever<\/strong> had steady returns and global reach, but its total return was dampened by currency fluctuations and slower growth in some emerging markets.<\/li>\n\n\n\n<li><strong>Colgate-Palmolive<\/strong> underperformed relative to peers. Despite strong brand presence, it faced stiff competition and struggled with volume growth, affecting its total return.<\/li>\n\n\n\n<li><strong>Kimberly-Clark<\/strong> had moderate performance but was limited by low innovation in core products and margin pressure, which affected its stock price growth.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, <strong>Church &amp; Dwight<\/strong> not only saw significant stock price appreciation but also steadily increased its dividend payout. This resulted in a <strong>compounded annual growth rate (CAGR)<\/strong> higher than its peers over the 5-year span. Its strategy of growing both organically and through acquisitions worked well during that time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In summary, from both a capital gains and dividend reinvestment standpoint, <strong>Church &amp; Dwight offered the most rewarding investment<\/strong>, making <strong>option D the correct answer<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>You buy the stock of four consumer goods companies in March 2014 and hold them for five years until March 2019. Here are the TRA (Total Return) charts from Bloomberg for all four stocks. The &#8220;Buy Price&#8221; in the top left-hand corner is the price you paid for each stock. The price of the stock [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-217485","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/217485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=217485"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/217485\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=217485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=217485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=217485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}