Quiz/Question

Discussion in 'Trading' started by ByLoSellHi, Apr 25, 2007.

In which example is an investor's risk/reward profile greater?

  1. Example A

    3 vote(s)
    15.0%
  2. Example B

    7 vote(s)
    35.0%
  3. They are equal

    7 vote(s)
    35.0%
  4. It is not possible to determine (if choosing this option, explain why)

    3 vote(s)
    15.0%
  1. So you are saying you have two positions with equal dollar values (lets say $10,000) and unlimited reward....

    So each position is $10k max risk and unlimited max reward....

    A = $10k risk/infinite reward

    B = $10k risk/infinite reward
     
    #11     Apr 25, 2007
  2. Okay, assume you can buy one unit, or one share, of each.
     
    #12     Apr 25, 2007
  3. I think so, Sally.
     
    #13     Apr 25, 2007
  4. Don't underestimate the query.
     
    #14     Apr 25, 2007
  5. What a strange question....

    It totally depends on how long you want to hold these.

    At date xx/xx/xxxx, stock A may have an edge in terms of its performance.

    At date yy/yy/yyyy, that edge may be on the stock B.
     
    #15     Apr 25, 2007
  6. Well, it had a terminal-flaw until page two.
     
    #16     Apr 25, 2007
  7. Oh God Jesus...
     
    #17     Apr 25, 2007
  8. I thought that was implicitly clear in the original phraseology.

    I agree that it was arguably ambiguous, but at any rate, it's clear now..
     
    #18     Apr 25, 2007
  9. Assume stock A has a lognormal bias that is in retrace while Stock B has a skewed kryptonic return but is in a wave 4 breakout.

    Does that clarify things....

     
    #19     Apr 25, 2007
  10. Really?

    What's next? Is the original poster going to say that stock A just formed a triple dragonkick dojo-based breakout pattern?

    People are bored.... :)
     
    #20     Apr 25, 2007