Arianna just made another fantastic investment: She purchased 400 shares in Great Gains Corporation for $20.0920.09 per share. Yesterday the stock closed at $54.1254.12 per share. In order to lock in her gains, she has decided to employ a stop-loss order. Assuming she set the order at $53.7353.73, what is likely to happen? Why might this not be a wise decision? At what price would you recommend setting the stop-loss order? Why?

1. Likely the price of the stock either goes up or falls

2. There is no need for a stop loss order in this scenario.

3. 5412541.2

Explanation:

1. Stock market prices are often  unstable, prices can be up today, the next day they are low.

2. Arianna has already made over 100% profit from the stock since she purchased at a good low price, yesterday's stock close price was still profit for her.

3. A 10% Stop loss price would have been the idea order price rather than the $53.7353.73.

4. Remember Stop loss order are meant to reduce or minimize the loss of investor or trader, a calculated level of  should be carefully decided.

answer; limited pay life;

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.