Solved: The stock of the madison travel co is selling for 28 a, Financial Management

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The stock of the madison travel co is selling for 28 a

The stock of the Madison Travel Co. is selling for $28 a share. You put in a limit buy or- der at $24 for one month.

During the month the stock price declines to $20, then jumps to $36. Ignoring commissions, what would have been your rate of return on this invest- ment?

What would be your rate of return if you had put in a market order? What if your limit order was at $18?

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Financial Management: The stock of the madison travel co is selling for 28 a

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Financial Management: The stock of the madison travel co is selling for 28 a

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