Conrado bought 100 shares of a stock for P50,840.00. A year later, he sold the stock for P490.20 a share and paid the broker 11/2% commission. Considering that he could have placed the P50,840.00 in a time deposit that pays 3% interest a year, was choosing to invest in stocks the better decision?
Conrado bought 100 shares of a stock for P50,840.00. A year later, he sold the stock for P490.20 a share and paid the broker 11/2% commission. Considering that he could have placed the P50,840.00 in a time deposit that pays 3% interest a year, was choosing to invest in stocks the better decision?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Conrado bought 100 shares of a stock for P50,840.00. A year later, he sold the stock for P490.20 a share and paid the broker
11/2% commission. Considering that he could have placed the P50,840.00 in a time deposit that pays 3% interest a year,
was choosing to invest in stocks the better decision?
Select one:
O a. Yes
b. No
C.
Both options are equally good.
O d. No answer
O e. Cannot be determined
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