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1) Common stock of XYZ inc. is at present trading at $55 per share. Let us say that you are investment advisor and the good client of yours is totally clueless about how limit order varies from stop order and stop-limit order. How would you go about describing to client how each order works and advantages, disadvantages, and implications of each kind of order? Be sure your description included suitable detailed numerical exs.

2) Do you have any good (or bad) exs of forecasting done by firms you are recognizable with? How would you utilize firm's information (given in different formats by both firm and other organizations) to find out if they appear to be reasonable in their statements?

A sample, of size 54 drawn from the normal distribution for stock returns has the mean of 12% and standard deviation of 30%. Determine the probability that a return greater than 8% will be observed?

i) 16.35%
ii) 83.65%
iii) 66.67%

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