Which shares are being sold?


Answer: $600 loss

This might be a stupid question but when they sell the shares are they using the exact shares they purchased?

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Hi @Matthew - yes, correct! You want to avoid inserting any “extras” into questions like this. Meaning, if the market price falls, assume it’s affecting the securities previously mentioned and don’t insert “new shares” into the mix.

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You are right here and you should use that same thought process across questions. Generally you should assume that you can only use the information provided on test questions. There are assumptions you need to make that will be referenced in the text, but I wouldn’t expect anything tricky like having to guess that there was an existing portfolio of securities bought at an unknown rate. If that was the case it would make every answer unpredictable. If you aren’t sure about whether an assumption might need to be made, test it out on all of the answers and see if it might be reasonable to think it would make sense.

Your Friend,

Nutritious Rose Leec :blush:

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