ANSWERS. . . Really, Really of Miami, Florida posted some great answers. . .
1) It must double, i.e. rise 100%
2) $37.50
3) Anything that falls 100% is worth 0
4) The $5 stock gives the greatest $ and % return ($250 with a 5% return vs. $100 with a 2% return).
5) Now worth $30,000 for a gain of 200%
6) Both make the same amount - $5,000. But the one with the smallest base had the greatest percentage yield, i.e., the long trader came out with a 33%gain versus a 25% gain for the shorter
7) The stock would have to quadruple, i.e., rise 300%
8) You didn't specify whether the gain or loss was simple or cumulative. If simple off the base they would be even. If cumulative off the base then the gainer would win (i.e.,1*1.1=1.1, 1.1*1.1=1.21 ...2.357*1.1=2.59) so the gainer goes up over 150% while the loser can only go down to approaching 100%.
9) You make a lot more selling on your own, i.e., if the book is a cheapie and sells for $1 then your profits are $5000 if you sell vs. $2250 if the bookstores sell, or $2750 more. (On your own: 10,000(1*.5)=$5000 vs. 100,000((((1-.5).9).05))=$2250
Number 9
I deducted 1 point for number 10 and even though they gave the correct answer to number 9, with superb mathematics AND they specified "$2750 more" , I was looking for a better answer tied to percentages. . . so the CORRECT answer to number 9 was: "Second book, 122.22 percent more" half point for number 9, since the question clearly asked "how much more?" Therefore, I deducted a half point from Really, Really's number 9 answer. . . being really anal about it.
Number 10
The answer was T [A. T. and T.] 3-for-2, long port and "suit to a T"
The extra credit . . .was 187.5 percent percentage equity gain as best I can figure.
Everyone did a great job. . . it was very hard.
Rande Is |
