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Exerc PDF

The document contains instructions and questions for two investment exercises. Exercise 1 asks the reader to calculate risk per share based on entry and exit prices of $50 and $47.50, risk as 1% of a $10,000 portfolio, and profit made from buying shares at $50 and selling at $65. Exercise 2 similarly asks the reader to calculate risk per share based on entry and exit prices, 1% risk of a $10,000 portfolio, and number of shares that can be bought.

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79 views2 pages

Exerc PDF

The document contains instructions and questions for two investment exercises. Exercise 1 asks the reader to calculate risk per share based on entry and exit prices of $50 and $47.50, risk as 1% of a $10,000 portfolio, and profit made from buying shares at $50 and selling at $65. Exercise 2 similarly asks the reader to calculate risk per share based on entry and exit prices, 1% risk of a $10,000 portfolio, and number of shares that can be bought.

Uploaded by

my pedro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SECTION 4: EXERCISE 1

ENTRY PRICE = $50.00

EXIT PRICE / STOP LOSS = $47.50

WHAT IS OUR RISK PER SHARE?

= ________________________

PORTFOLIO VALUE = $10 000

WHAT IS 1% RISK OF OUR PORTFOLIO?

= ________________________

HOW MANY SHARES CAN I BUY IF I AM GOING TO RISK $100 AT $2.50 PER SHARE?

= ________________________

YOU THEN SELL THIS SHARE A FEW WEEKS LATER FOR $65.

HOW MUCH PROFIT HAVE YOU MADE?

= _________________________

= _________________________

= _________________________

= _________________________
SECTION 4: EXERCISE 2

ENTRY PRICE = $55.68

EXIT PRICE / STOP LOSS = $51.44

RISK PER SHARE = __________________

PORTFOLIO VALUE = $10 000

WHAT IS 1% RISK OF OUR PORTFOLIO?

= _____________________

HOW MANY SHARES CAN I BUY?

= _____________________

= _____________________

WE ALWAYS ROUND OFF TO THE NEAREST WHOLE NUMBER.

0.1 – 0.4 = 0

0.5 – 0.9 = 1

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