The investment recommendation for one stock depending on the difference between today’s price and the future varying price per share, x, can be represented by the inequality |x−29.64|≥(0.0725)(29.64) Which statement is true about the plan based on the inequality? Round the answer to the nearest hundredth when necessary.
Answer
A
x is the number of shares.
B
The investor will only sell the stock if the value falls below 27 point 4 9 dollars.
C
The opening price of the stock is 29 point 6 4 dollars.
D
The change in the stock cannot be more than 2 point 1 5 dollars.
Explanation
In |x − 29.64|, the number 29.64 is the reference or opening stock price, and x represents a future price per share. The required difference is 0.0725 × 29.64 = 2.1489, or about $2.15. The inequality says the price must differ from the opening price by at least that amount; it does not say the change cannot be more than $2.15.
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