An investor is considering to take a short position in the CIB stock. After analyzing the market to take a decision the investor found the average daily trading on CIB to be 2,640 while the long trade positions are 1,082. Should the investor go ahead with this short sale or not? Support your answer quantitatively and with an explanation

An investor is considering to take a short position in the CIB stock. After analyzing the market to take a decision the investor found the average daily trading on CIB to be 2,640 while the long trade positions are 1,082. Should the investor go ahead with this short sale or not? Support your answer quantitatively and with an explanation

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Description: 3) An investor is considering to take a short position in the CIB stock. After analyzing the market to take a decision the investor found the average daily trading on CIB to be 2,640 while the long trade positions are 1,082. Should the investor go ah

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 2Q: Two investors are evaluating General Electric’s stock for possible purchase. They agree on the...

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