Suppose you have invested $1,000 in a stock whose price is increasing at 10 percent a year. Your stock broker, who is never wrong, recommends a stock rising at 20 percent a year. Assuming the broker earns 4 percent of the stock’s value on any purchase or sale of the stock, should you take her recommendation?

Answer rating: 100% (QA)

To make a sound decision lets analyze both scenarios Current Stock Initial investment 1000 Annual gr... View the full answer