Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Serena is managing an investment portfolio. She invested in four stocks in her portfolio on 15 th of December 2020. Table below presents the price

Serena is managing an investment portfolio. She invested in four stocks in her portfolio on 15th of December 2020. Table below presents the price changes of these four stocks from 15th of December 2020 to 20th of January 2021.

Stocks

15th of December 2020

20th of January 2021

ABC

$16.28

$18.30

XYZ

$19.20

$16.75

TSV

$35.10

$31.31

DRT

$100.64

$101.00

On 20th of January 2021, Serena sold stocks ABC and DRT and continued holding stocks XYZ and TSV. What is the best terminology to describe Serenas behaviour? Please use terminology covered in the lectures and explain your answer.

For calculations please round your final answer to two decimal places, round any intermediary calculations to four decimal places.

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

Research In Finance

Authors: John W. Kensinger

1st Edition

0857245414, 978-0857245410

More Books

Students also viewed these Finance questions

Question

1. 11.6a What is capital rationing? What types are there?

Answered: 1 week ago