You Have Invested $1,000 in a Stock Whose Price Is

question 47

Essay

You have invested $1,000 in a stock whose price is increasing at 10 percent a year.Your stock broker, who is never wrong, recommends a stock rising at 20 percent a year.Assuming the broker earns 4 percent of the stock's value on any purchase or sale of the stock, should you take her recommendation?

---

Definitions:

Gluteus Maximus

The largest and most superficial of the three gluteal muscles, situated in the buttocks, responsible for movement of the hip and thigh.

Enlarged

Refers to an increase in size or volume, commonly used to describe a change in physical dimensions of an object or organism.

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in complex functions like consciousness, thought, emotion, and memory.

Innate Ability

A natural skill or talent an individual is born with, not acquired through learning.