Please help me find the answer to my last question! First one with correct answer by tonite will get 10 points.
Thanks
In their social studies class, Adolph and Hans are studying the stock market. Yesterday, Adolph and Hans were discussing their imagined profits in the stock they "bought". "One hundred thirty dollars on a six and a half month investment of $1000.00 is great," said Adolph. "I wish I'd come in sooner," said Hans. "Nevertheless, $42.00 on $700.00 isn't bad." How long has Hans held his stock?
2007-11-27 05:02:25 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Adolph made 2% per month AVERAGE. So with no other variables Hans had his stock 3 months. However, the stock market doesn't work that way. It might be up one day and down another and Hans could not have earned the same percentages of growth that Adolph earned. Whoever wrote this question obviously knows nothing about the real world of stocks.
2007-11-27 05:26:07 · answer #1 · answered by lcmcpa 7 · 3⤊ 0⤋
Stocks don't work that way, you can make 300% profit or more in 5min. and lose it just as quickly. So you see the time he got in is irrealivant to his gains unless the stock was moving at a consistant pace for the past 61/2 months which is never the case, or everyone would buy the stocks that they could predict that closely.
2007-11-27 05:15:46 · answer #2 · answered by Anonymous · 1⤊ 0⤋
I'm going to go with 5.328 months, but only if the stock earned a constant rate of return for the entire 6.5 months. I figured that $136 on $1000 over 6.5 months yields a 7.367 APY. Given a present value of $700 and future value of $742 and yield of 7.367% compounding over a single period that period would have to be 5.328 months.
2007-11-27 06:09:44 · answer #3 · answered by neomartic 1 · 0⤊ 0⤋
Share markets is a great option to make money. You can learn it on the basis of statistics. A very good company is one which gives good dividends over a period of time and its structure is such that Its shares over a period of times show a certain raising trend. You can invest in those companies to make a long term investment. To make money in quick time you have to master the market by following it daily.
2016-05-26 03:05:50 · answer #4 · answered by ? 3 · 0⤊ 0⤋
i worked it out leaving out the stock market and i come up with 5.345 i could be a little off due to rounding!!!
2007-11-29 23:51:02 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I don't think there is any way you can determine that.
2007-11-27 05:06:20 · answer #6 · answered by ? 6 · 1⤊ 0⤋