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QUESTION

Insufficient information to compute Consider three investors in Stock A: Single invests for 1 year Ms Double invests for 2 years Mrs.

  1.     Insufficient information to compute Consider three investors in Stock A:

Mr. Single invests for 1 year

Ms Double invests for 2 years

Mrs. Triple invests for 3 years

Which of the following statements are true? (Hint: Recall what the basic stock valuation principle is.)

a.     Mrs. Triple would place the highest value on Stock A because she is investing for the longest time.

b.    Ms. Double would place the second highest value on Stock A because she is investing for the second longest time.

c.     Mr. Single would place the lowest value on Stock A because he is investing for the shortest time. all of the above are true

d.    Mr. Single, Ms. Double, and Mrs. Triple would all place the same value on Stock A

e.     none of the above are true 

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