Apple: http://quotes.wsj.com/AAPL Facebook: http://quotes.wsj.com/FB Target: htt

Question

Apple: http://quotes.wsj.com/AAPL

Facebook: http://quotes.wsj.com/FB

Target: http://quotes.wsj.com/TGT

risk Students should select funds that meet their personal risk levels. For example, are students takers, risk evaders, or indifferent to risk? Their choices of stocks are affected by their dispo- sition toward risk. The higher the student's level of risk tolerance, the more likely he or she will inves Lower risk higher chance for stability. t in aggressive funds versus income funds. Higher the risk higher potential for income. Students may find the following table helpful in recording data about their stock investments. Divid $25,000 into three parts or budgets as indicated in Column 1 below. Stock Purchases Name of Closing No. of Cost of Amt. of Cost of Budget Amount Corporation Price Shares StockComm. Investment 1. 2. 3. Name of the corporation: Write in the name of the company from the stock market. Closing price: Record the close price of the stock from the Wall Street Journal. This is the price students will pay per share for the stock. Number of shares: Record the number of shares of stock purchased. Take the budgeted amount and divide it by the close price. Students cannot buy a fraction of a share; therefore, drop all fractions and use only whole numbers. Then subtract four (4) shares from the whole number. This pays the commission. Cost of stock: Multiply the close price by the number of shares. This is the amount of money the shares will cost. Amount of commission: Figure the commission. Multiply the cost of the stock by 1 percent (0.01). This is an approximate amount. Commission rates vary among brokers. Cost of the investment: Add the amount of commission to the cost of the stock to find the cost of the investment. Record Sheet for Recording Weekly Activity *Change from the Week Date of the Market Close Price Previous Week NA for this week 3 To find the weekly change, subtract the present week's close from the previous week's close;

Explanation / Answer

Lets take the 3 studets investment in 3 stocks in the following ratios Facebook Amazon Target sales Student No of shares Amount No of shares Amount No of shares Amount Total Investment Commsion Total Amount invested Facebook Amazon Target total selling commision net income Gain/loss A 11 1926.1 108 18473.4         73.00         4,344                       24,744 247.4373 24991.1673 1958 18792 4453 25203 252.03 24950.97 -40.1973 B 79 13832.9 36 6157.8 80 4760.8                       24,752 247.515 24999.015 14062 6264 4880 25206 252.06 24953.94 -45.075 C 32 5603.2 34 5815.7 224 13330.24                       24,749 247.4914 24996.6314 5696 5916 13664 25276 252.76 25023.24 26.6086 Purchase price 175.1 171.05 59.51 Closing price 178 174 61 Student C option is best.

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