An Analyst Has a Limit Order Outstanding on a Stock

question 116

Multiple Choice

An analyst has a limit order outstanding on a stock. He argues that the probability that the order will execute before the close of trading is 0.20. Thus, the odds for the order executing before the close of trading are

• A) one in four.
• B) one in five.
• C) four to one.
• D) five to one.

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Definitions:

Exchange Rate

The price of one currency in terms of another currency.

Accounts Receivable-Kagome

An account representing money owed to Kagome (presumably a company) by its customers for goods or services that have been delivered but not yet paid for.

Equity Method Investments-Ferris

A specific example or case of using the equity method for accounting for investments in which an investor has significant influence over the investee, but does not control it.

Cash Dividends

Payments made by a company to its shareholders out of its profits in the form of cash.