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 $ _________