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I'm having a bit of difficulty with these questions. as the image may be blurry, I'll attach the questions as text as well: 1) I
I'm having a bit of difficulty with these questions. as the image may be blurry, I'll attach the questions as text as well:
1) I wanted to put a stop-loss order on a Netflix security I bought for $400 a share. In
the case of the market going down I am willing to only lose $10 on that share. What
is a stop-loss order, at what level would I set it?
2) My stop-loss order was executed, my Netflix share was sold and I did not lose more
than $10! When the market opens the next day I predict Netflix will continue to
drop, as investors get weary. I want to take advantage of Netflix stock taking a dip.
What type of order do I submit to buy a Netflix share if at any point through out the
following day it reaches $387 per share
3a) Below we have graphical representation of a solar energy company called SunPower.
The graph below is a three year summary of SunPower with the blue line representing
the moving average. Comment on how you would form a hypothesis on your short or
long term investments based on these movements. Use terms like moving average,
or standard deviations, outliers, to strengthen your response. (follows the first graph)
3b) We now have the performance throughout the life of the company. Analyze this graph, how does your investment strategy change based on the new, more long term, information? Based on your market analysis and what you know about energy investment around the world, would this be a good company to hold shares in for long term growth? (follows the second graph)
4) Suppose a life-long friend asked you for help in creating an investment portfolio that
will be accessed in 15 years, they have $100,000 to invest. They would like to go
over their portfolio every two years to make adjustments if necessary. How would you
advise them to invest their savings? Describe the techniques you would employ and
what concepts of diversification and risk management you would suggest? Comment
on what strategies you would use and what equation would be useful to find their
projected returns if they receive 8% returns? hint: you have the three variables present
to calculate future value here (principal, time period, interest rate/rate of return)
Thank you for your help!
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