Week 7 Chapter 11 P2 Page 307. In late 2009, you purchased the common stock of a company that has reported significant earnings increases in nearly every quarter since your purchase. The price of the stock increased from $12 a share at the time of the purchase to a current level of $45. Notwithstanding the success of the company, competitors are gaining much strength. Further, your analysis indicates that the stock may be over-priced based on your projection of future earnings growth. Your analysis, however, was the same one year ago and the earnings have continued to increase. Actions you might take range from an outright sale of the stock (and the payment of capital gains tax) to doing nothing and continuing to hold shares. You reflect on these choices as well as other actions that could be taken. Describe the various actions that you might take and their implications. First, I would examine the weakness or strength in the overall stock market, to provide me a good enough reason to sell my stocks. Markets constantly rise and fall, but historically, over the long term a under-diversified portfolio of stocks will not generate a positive return, and can also lead an investor to be undervalued in receiving a marketable return above the rate of inflation. Stock prices will fall at some point or another, and rise just as well. There are many reasons why a stock's price falls and it is up to me to do the research to determine the root cause. By identifying the why axsis that cause thee price to fall, I can make an informed decision to decide if it is time to sell my stock position or if the fall in value presents an opportunity to purchase additional shares of a stock Some possibilities include: SEE ATTACHED Home work sheeet