Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:You start trading with an account worth $250,000. You decide that the
most you want to risk on any trade is 0.5% of the account value.
You've been following a stock and believe the appropriate entry point is
$40 per share with an 8% trailing stop. Based on this information,
what is your initial trade size?
$15.625
○ $50,000
O $31,250
○ $25,000
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