Wednesday, November 3, 2010

FIN630 GDB No. 1 Announcement

“Investment Analysis & Portfolio Management (Fin 630)”

This is to inform that Graded Discussion Board (GDB) has opened according to the following schedule

Schedule

Opening Date and Time

November 04, 2010 At 12:01 A.M. (Mid-Night)

Closing Date and Time
November 08, 2010 At 11:59 P.M. (Mid-Night)


Note: No extra or bonus/grace period is available for attempting GBD

 
“Discussion Question”

Mr. A is holding 1500 shares of a company and he wants to buy or sell some shares. He is taking the services of a broker for trading in stock exchange. Broker has analyzed the market trend based on mutual fund cash position analysis and Bar chart analysis. Broker has provided following information to Mr. A on different days:

A. Due to adverse political situation of country and some other economic factors, only 40% of mutual funds are invested in the stock market and rest is idle.


B. In the Bar chart a stock breaks through resistance level.

Required:

Based upon the above information provided by broker:

1. What is feasible for Mr. A (buying or selling) in situation A and in situation B?

2. What will be the market trend (bearish or bullish) in situation A and in situation B?

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