Consider the following limit order book of the stock on 13-Mar-2021 Limit Buy Orders Limit Sell Orders Price Shares Price Shares $38.00 100 $40.00 350 36 350 42 100 34 500 44 500 32 1,000 46 1,000 You use a market order buy 500 shares. Suppose you can then sell all the shares at the price of $48 in the following day. Which answer is the closest value to the rate of return on this investment? A. 9% B. 12% C. 15% D. 18%

Consider the following limit order book of the stock on 13-Mar-2021 Limit Buy Orders Limit Sell Orders Price Shares Price Shares $38.00 100 $40.00 350 36 350 42 100 34 500 44 500 32 1,000 46 1,000 You use a market order buy 500 shares. Suppose you can then sell all the shares at the price of $48 in the following day. Which answer is the closest value to the rate of return on this investment? A. 9% B. 12% C. 15% D. 18%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter11: Investment Planning

Section: Chapter Questions

Problem 4FPE

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