You have been researching a stock that you like, which is currently trading at $50 per share. You would like to buy the stock if it were a little less expensive—say, $47 per share. You believe that the stock price will go to $70 by year-end and then level off or decline. You decide to place a limit order to buy 100 shares of the stock at $47 and a limit order to sell it at $70. It turns out that you were right about the direction of the stock price, and it goes straight to $75. What is your current position?
Answer to relevant Questionsa. Explain what role the Wall Street Journal and/or Barron’s might play in meeting Angel’s needs. What other general sources of economic and current event information would you recommend to Angel? Explain. b. How might ...Differentiate among the three basic risk preferences: risk-indifferent, risk-averse, and risk-seeking. Which of these attitudes toward risk best describes most investors? Explain why you must earn 10% on all income received from an investment during its holding period in order for its yield actually to equal the 10% value you’ve calculated. Your friend asks you to invest $10,000 in a business venture. Based on your estimates, you would receive nothing for 4 years, at the end of year 5 you would receive $4,690, and at the end of year 6 you would receive $14,500. ...The historical returns for 2 investments—A and B—are summarized in the table below for the period 2010 to 2014. Use the data to answer the questions that follow. a. On the basis of a review of the return data, which ...
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