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Five years year, Peter purchased 300 shares of Stock K at a share price of $50 and he also purchased 300 shares of Stock J
Five years year, Peter purchased 300 shares of Stock K at a share price of $50 and he also purchased 300 shares of Stock J at a share price of $60. During these five years, Peter have not traded any share for these two stocks. Today, the share price of stock K increases to $80, but the share price of stock J remains at $60. Some investors conclude that the return of stock J is lower than the return of stock K for Peter. Discuss (with not more than 100 words) whether you agree with those investors or not. (10 marks)
Five years year, Peter purchased 300 shares of Stock K at a share price of $50 and he also purchased 300 shares of Stock J at a share price of $60. During these five years, Peter have not traded any share for these two stocks. Today, the share price of stock K increases to $80, but the share price of stock J remains at $60.
Some investors conclude that the return of stock J is lower than the return of stock K for Peter. Discuss (with not more than 100 words) whether you agree with those investors or not. (10 marks)
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