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this is ONE long question pls answer the whole thing Last yoar Marcelino graduated from high school and recelved several thousand dollars from an uncle

this is ONE long question pls answer the whole thing image text in transcribed
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Last yoar Marcelino graduated from high school and recelved several thousand dollars from an uncle as a graduation gitt. Marcelino, now in his fint year of college, just heard of a guy in his do that imvested in an oil exploration company and made a huge profit in a fow months. Marcelino likes the idea of making some money fast and is considering invegting his gradurtion git money has run up a fairly large credit card bill, and has trouble balancing his budget on a monenly basis, In addition, Marcelino realy doesnt plars. a. Before investing any money, what five things should Marcelino do first? b. Is Marcelino's strategy of investing in an oil exploration stock to make quick profits investing or speculating? Support your answer. d. Calculate the average annual rate of return it he purcheses shares in an Internet stock at $23 per share, holds the shares for 5 years, and sells them for $63. Wh he is in the 25 percent marginal tax bracket? What potentially significant disadvantage does Marcelino face if he sells his f. What other risks does Marcelino face if he invests in an exploration stock? 9. By investing in two unrelated domestic stocks rather than in just one slock, would Marceline increa f. What other risks does Marcelino foce if he invests in an exploration stock? (Select the best choice below.) A. In addition to interest ratp risk, Marcelino should ideally keep a watchful eye on al of the other risks. However given the uniqueness of an axploration stock the mont important of the rsikn would be buainess risk, Poitical and regulatory risk, and excharge rate risk if the fim deasts substantially in overseas markets. B. In addition to interest rate risk, Marcelino should idealy keep a watchful eye on all of the cether riaks. However given the uniqueness of an exploration stack the mout important of the rinka would be bushess risk and oxchange rate risk if the firm doals substantaly in overseas markets. C. In addition to interest rate risk, Marcelino should ideally keep a watchfid eye on all of the other risks. However given the uniqueness of an axplonation atock the most incortant of the ritas would be regulatory risk and exchange rate risk if the firm deals substantially in overseas markets. D. In addition to interest rate risk. Marcelino should idealy keep a watchtil eye on al of the other risks. However given the uniqueness of an explonation stock the mont important af ite itais would be political and exchange rate risk if the firm deais substanfially in crersest markets. (Seliect from the drop-down menus.) rick cannot be efirminated through diversification. Holding one stock does not increase hisk hownver, owning only one stock does increase Last year Marceline graduated from high school and received several thousand dollars from an uncle as a graduation git. Marcelino, now in Nis first yoar of college, just keard of a guy in fis dom has nun up a fainy large credit card bill, and has trouble baliancing his budget on a monttly basis. In addition, Marcelino really doesnt know much about investing or how people actually "make money investing " Luc has asked you to help Him work through the following questicns so that he can takik to Marcefino about Bin invetime plans. a. Beloce imvesting any money, what five things should Marcelino do first? b. Is Marcelino's stralegy of investing in an oll exploration stock to make quick pectes investing or speculating? Support your answer. c. Lue started taking to Marcelino about market efficiency and market timing. Based on what you now know, how fikely is it that Marcelino can pick a slock that will beat the manker? he is in the 25 percent marginal tax brocket? 6. What potentally significant diadvantage does Marcelino face if he selis his slock for $63 per share after only 10 months and incurs a short term capital gain? 1. What other risks does Marcelino face it he invests in an exploration stock? Marcoline's plan to make a quick proft in an internet stock is most closely aligned with the definition of Short term strategies that depend aimost solely on aupoiy and derrand to determine peices are representative of , not Gerect alt the choices that apply) atock. A. It is extremely diffcult to time the market, mearirg that buying a slock at a low price and seling it at or near its Nigh price is neary imposaible. mariet. manet ow much about investing or how poople actually "make money investing" on a monthly basia, in addifion, Morcelino really doesnt ans. Before investing any money, what five things should Marcelino do first? Is Marcelino's strategy of imesting in an ol exploration stock to make quick peofts investing or speculating? Sapport your answer. e is in the 25 percent marginal tax bracket? What potentially significant disadvantage doets Marcolino tace the sells his stook for $63 per share afiet only 10 menths and iscurs a shent-4erm capital gain? What othet fitiks does Marcelino face if he invents in an explorasion stock? Select from the drop-down menus.) fikk cannot be eliminated through diversification. Holding one slock does not increase portiolio due to "Business spocitie" nsk. that imested in an oil exploration company and made a huge profit in a few months, Marcelino likes the idea of making some money fast and is considering imvesting his graduabion oft novey in as has fun up a tairty large credit card bill, and has trouble balancing his budgot on a monthly basis, In addition, Marceline really doesnt? a. Belore imvesting any money, what the things should Marcelino do first? b. Is Merceino's strategy of investing in an oi exploration stock to make quick profits investing or speculating? Support your answer. c. Luc started talking to Marceline about market efficiency and market timing. Based on what you now know, how likely is it that Marceline can pick a slock that will "beat the marker? he is in the 25 percent marginal tax bracket? e. What potenfially significant disadvantage does Marcelino face if he sels his stock for $63 per share after only 10 months and incurs a shont-term capitar gain? 1. What other risks does Marcelino tace it he invests in an exploration slock? 9. By investing in two unrelated domestic stocks rather than in lust one stock would Marcelino increase or docrease his systematic nisk exposure? What about his unsysuematic risk axposure? a. Betore investing any money, Marcelino should: (Seloct all that apply) A. establiah and maintain an emergency fund nqua' to three to six months of his take home pay B. have his financial aftain in order. c. set goals D. withdraw his money from the bank 1. entabilah and stick to a budgent. 5. Find out the name of the oil exploration company. Marcedino s plan to make a quick profit in an internet stock is most dosey algned with the definition of Short Herm strategies than depend almoet solely on supply and denthand to Last year Marceline graduated from high school and received several thousand dollars from an unde as a graduation gitt. Marcelino, now in his first year of colloge, just Beard of a gury in his doem simitar stock. Marcelino's roommate, Lue, just finished a personal finance course and is concerned that Marcelino may be getting Himself into frouble. Lue knows that Marcalino ikes it shop iniline. has nun up a faily large credit card bilt, and has trouble balancing his budget on a monthly basis. In addificon, Marcelino rosily doesent know much about investing or how people actually "make monoy investing " Luc has asked you to help him work through the following questions so that he can falk fo Marcelino about hia investronet plans. a. Before investing any monoy, what five things should Marcelino do first? b. Is Marcetino's strategy of investing in an oll exploration stock to make quick profits investing or speculating? Support your answer. c. Luc started talking to Marcelino about market efficiency and market timing. Based on what you now know, how hiknly is it that Marcelino can pick a stock that will 'beat the marker? he is in the 25 percent marginal tax bracket? 6. What potentially significant disadvantage does Marcolino face it he sells his stock for $63 per share affer only 10 months and incurs a short-term capital gain? t. What cher risks does Marcelino tace if he imvests in an exploration stock? 9. By imesting in two unrelated domestic stocks rather than in just one stock would Marcelino incresse or decrease his syntematic risk exposure? What about his unsystematic risk exposum? the holding peried return and divide by the number of years in the holding period.) The annualized rate of refurn is (Round to two decimal places.) What is his aflec-tax rate of retum it he is in the 25 percent marginal tax bracken? The tax due is 1 (Round to the nearest cent.) The aher-ax rate of return is 7. (Round to two decinal placee.) -. What potentally significant disadvantage does Marcetino face if he selis Nis stock after only 10 months, for $63 per share, and incurs a whont lerm caphai gain? for indiduain in high maginal tax brackets. Is the statament above true or faise? (Eelect from the drop-down mecu)

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