Use the Following Stock Quotes to Answer This Question

question 15

Multiple Choice

Use the following stock quotes to answer this question:

-Vivian purchased 700 shares of Aldridge,Inc.stock at what turns out to be the lowest price during the past year.How much has the value of her shares changed since she made this investment?

• A) -$4,970
• B) $60
• C) $1,950
• D) $420
• E) $5,390

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Definitions:

Liquidity Risk

The risk of being unable to quickly convert assets into cash without significant loss in value, affecting a company's or individual's ability to meet short-term obligations.

Hedge Fund Returns

The earnings generated from investments in a hedge fund, which is a pooled investment fund that employs different strategies to earn active returns for its investors.

Pairs Trading

A form of statistical arbitrage in which stocks are paired up based on underlying similarities and long/short positions are established to exploit any relative mispricing between each pair.

Statistical Arbitrage

A quantitative strategy that seeks to take advantage of price inefficiencies between related financial instruments by employing complex mathematical models.