Question

Question 2 (1 point)
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A year ago, Rebecca purchased 100 shares of Havad stock for $20 per share.
Yesterday, she placed a limit order to sell her stock at a price of $33 per share before
the market opened. The stock's price opened at $23 and slowly increased to $26 in
the middle of the day, before declining to $22 by the end of the day. The stock did
not pay any dividends over the period in which Rebecca held it. Given Rebecca's
initial investment of $ 20 per share, her return is

Answer 1

Answer:

Her return is  $R = 0.10$

Step-by-step explanation:

From the question we are told that

   The number of shares purchased is $n = 100 \ shares$

    The  cost price  of each share is  $x = \ 20$

    The limit order is    $y = \ 33$

    The first  market price for each share is  $k = \ 23$

    The second   market price for each share is $u = \ 26$

     The  third market price for each share is  $w = \ 22$

Generally the  limit order would  not be  executed given that it is higher than the market opening and  closing price.

  Considering Rebecca's initial investment of $ 20 per share, her return is mathematically evaluated as

         $R = \frac{w + d - x}{x}$

Here d stands for the dividend but since we are told that the stock did not pay any dividend

        $R = \frac{22 + 0 - 20}{20}$

         $R = 0.10$