Consider the following limit order book of the stock on 13-Mar-2021 Limit Buy Orders Limit Sell Orders Price Shares Price Shares $38.00 100 $40.00 350 36 350 42 100 34 500 44 500 32 1,000 46 1,000 You use a market order buy 500 shares. Suppose you can then sell all the shares at the price of $48 in the following day. Which answer is the closest value to the rate of return on this investment? A. 9% B. 12% C. 15% D. 18%
Consider the following limit order book of the stock on 13-Mar-2021 Limit Buy Orders Limit Sell Orders Price Shares Price Shares $38.00 100 $40.00 350 36 350 42 100 34 500 44 500 32 1,000 46 1,000 You use a market order buy 500 shares. Suppose you can then sell all the shares at the price of $48 in the following day. Which answer is the closest value to the rate of return on this investment? A. 9% B. 12% C. 15% D. 18%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Consider the following limit order book of the stock on 13-Mar-2021
|
Limit Buy Orders |
Limit Sell Orders |
||
|
Price |
Shares |
Price |
Shares |
|
$38.00 |
100 |
$40.00 |
350 |
|
36 |
350 |
42 |
100 |
|
34 |
500 |
44 |
500 |
|
32 |
1,000 |
46 |
1,000 |
You use a market order buy 500 shares. Suppose you can then sell all the shares at the price of $48 in the following day. Which answer is the closest value to the rate of
| A. |
9% |
|
| B. |
12% |
|
| C. |
15% |
|
| D. |
18% |
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