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QUESTION

1-Chris LeBlanc estimates that if he does 5hours of research using data that will cost $ 79.00, there is a good chance that he can improve his...

1-Chris LeBlanc estimates that if he does 5hours of research using data that will cost $ 79.00, there is a good chance that he can improve his expected return on a $ 10,000, ​1-year investment from 7.7 % to 10.1 %.

Chris feels that he must earn at least  $ 21.00 per hour on the time he devotes to his research.

a. Find the cost of​ Chris's research.

b. By how much​ (in dollars) will​ Chris's return increase as a result of the​ research?

c. On a strict economic​ basis, should Chris perform the proposed​ research?

2-Al Cromwell places a market order to buy a round lot of​ Thomas, Inc., common​ stock, which is traded on the NYSE and is currently quoted at $ 50.32 per share. Ignoring brokerage​ commissions, determine how much money will Cromwell probably have to pay. If he had placed a market order to​ sell, how much money will he probably​ receive?  Explain.

Ignoring brokerage​ commissions, Cromwell would probably have to pay ​$ ____

3-Imagine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $ 38.00​, although the stock is currently selling for $ 40.33.  Discuss the​ consequences, if​ any, of each of the following situations.

a. The stock price drops to  $ 39.19 per share 2 months before cancellation of the limit order.

b. The stock price drops to $ 38.00 per share.

c. The minimum stock price achieved before cancellation of the limit order was

$ 38.72. When the limit order was​ canceled, the stock was selling for $ 47.06 per share.

4-If you place a​ stop-loss order to sell at $ 23.00 on a stock currently selling for $ 26.51 per​ share, what is likely to be the minimum loss you will experience on 50 shares if the stock price rapidly declines to $ 20.47 per​ share? What if you had placed a​ stop-limit order to sell at $ 23.00 and the stock price tumbled to $ 20.47​?

If you place a​ stop-loss order to sell at $ 23.00 on a stock currently selling for $ 26.51 per​ share, the minimum loss you will experience on 50 shares if the stock price rapidly declines to $ 20.47 per share is  ​$ _________

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