Benchmark, opportunity, implicit and explicit costs

ChrisBish

New member
Joined
Jan 15, 2021
Messages
3
(i) Consider the following case, show the benchmark price, opportunity cost, implicit cost and explicit cost? [8]

At some point, the investment manager decides to buy 2, 000 Manchester United stocks, which trades at $20.00.
A limit order is placed in the market, say at $19.95 and is not executed at all.
The market closes on that day at $20.10.
The commission is $0.05 per share.
The following day, the order is revised at $20.15 and 1, 500 stocks are filled at that price, and the market closes at $20.20.
 
You have nothing to offer? Why are you thinking on this? Textbook? Bet amongst friends at the pub? Give us something to go on.
 
(i) Consider the following case, show the benchmark price, opportunity cost, implicit cost and explicit cost? [8]

At some point, the investment manager decides to buy 2, 000 Manchester United stocks, which trades at $20.00.
A limit order is placed in the market, say at $19.95 and is not executed at all.
The market closes on that day at $20.10.
The commission is $0.05 per share.
The following day, the order is revised at $20.15 and 1, 500 stocks are filled at that price, and the market closes at $20.20.
Please show us what you have tried and exactly where you are stuck.

Please follow the rules of posting in this forum, as enunciated at:


Please share your work/thoughts about this problem.
 
Top