Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 4 pts You've been tracking your trading performance and wish to determine the expectancy from a trade you are planning. Assume you have

image text in transcribed

Question 4 4 pts You've been tracking your trading performance and wish to determine the expectancy from a trade you are planning. Assume you have $200,000 and wish to risk 2.00% on the trade and plan to place an 10% stop loss. The security you are following is trading at $50. Assume that you win 40% of the time and have a gain of 18% each win. When you lose, you lose 6%. What is your expectancy? $1,440 $340 $1,240 $785

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Inside And Outside Liquidity

Authors: Bengt Holmstroem, Jean Tirole

1st Edition

0262518538, 9780262518536

More Books

Students also viewed these Finance questions

Question

How does this scenario illustrate the process of mainstreaming?

Answered: 1 week ago

Question

What are personal and social media?

Answered: 1 week ago