₦airaland Forum

Mpeace:
The ansa is $1, sometimes you fit get $0. Maths hard oh. Na so stocks hard too.
I dey test ur maths skills. You kw say exam don dey reach, I need to decide who I go copy from.

Answer is : CANNOT BE DETERMINED

why?

Question:
You bought a ticket for $7 and sold for $8.

Then you bought the same ticket for $9 and sold for $10. How much did you earn?

First transaction gave you $1 gain.

But nothing was stated if the person only had $8 as his final amount.

So for him to have $9, he needs to borrow $1 and add to the $8 he has before he can carryout the second transaction. This is scenario 1.

Scenerio 2: "Then you bought the same ticket"....what is the time frame of this "Then". No one knows. What if he invested the $8 and lost all. Or he invested it and made much more to enable him get enough to carryout the next transaction.

For scenerio 1: if he borrowed to $1 to complete the second transaction, then he earned $1.

But if he didn't borrow to add to compete the money he has, he must have invested the $8 he had earlier in the transaction to get more than $9 or $9. So the amount earned isn't clear.

So where you have chance of getting multiple answers, then leave the answer as : CANNOT BE DETERMINED.

Mpeace:
I don dey do dis maths since yesterday and na different ansa I just dey get. This year, I don decide say I no too stress my self, na to just copy ansa go submit.

Looking at it from this angle:
He bought 7 sold 8 = $1 gain.
added $1 to 8 again to buy at $9 = loss of $1
now sold at $10 = #1 gain/
He actually gained nothing. I was right with my first answer. He gained NOTHING.

Mcy56:
Looking at it from this angle:
He bought 7 sold 8 = $1 gain.
added $1 to 8 again to buy at $9 = loss of $1
now sold at $10 = #1 gain/
He actually gained nothing. I was right with my first answer. He gained NOTHING.

RabbiDoracle:
Answer is : CANNOT BE DETERMINED

why?

Question:
You bought a ticket for $7 and sold for $8.

Then you bought the same ticket for $9 and sold for $10. How much did you earn?

First transaction gave you $1 gain.

But nothing was stated if the person only had $8 as his final amount.

So for him to have $9, he needs to borrow $1 and add to the $8 he has before he can carryout the second transaction. This is scenario 1.

Scenerio 2: "Then you bought the same ticket"....what is the time frame of this "Then". No one knows. What if he invested the $8 and lost all. Or he invested it and made much more to enable him get enough to carryout the next transaction.

For scenerio 1: if he borrowed to $1 to complete the second transaction, then he earned $1.

But if he didn't borrow to add to compete the money he has, he must have invested the $8 he had earlier in the transaction to get more than $9 or $9. So the amount earned isn't clear.

So where you have chance of getting multiple answers, then leave the answer as : CANNOT BE DETERMINED.

Good answer but That's a clear picture of what happens sometimes when we Jijo. If we fail to keep track, we end up losing money without even knowing.
Jijo is good but wisdom must be applied.

[quote author=RabbiDoracle post=75076103][/quote]Compliment of the season Sir.
Nice to see you on the thread.

Mcy56:
Compliment of the season Sir.
Nice to see you on the thread.

Thanks

[quote author=Mcy56 post=75075766]
If na this kind maths they wan give us during exam, the thing go hard small o. Make dem test us on wetin they tish us for class biko.

Me I de see 2$ profit oo

He bot at 7 sold 8. Buy at 9 , at did point he has taken out 8$ from his old purse.. Las las he sold at 10. Profit = 10-8.

Mpeace:
Good answer but That's a clear picture of what happens sometimes when we Jijo. If we fail to keep track, we end up losing money without even knowing. Jijo is good but wisdom must be applied.

So na me you wan give upper cut bah? See as I dey look you with side eye.
I know say e get where you dey go na.

Mcy56:
So na me you wan give upper cut bah? See as I dey look you with side eye.
I know say e get where you dey go na. Okay i don change my mind, the answer is $2 gain.

Why una dey carry primary 1 arithmetic enter algebra kwa.

Person do two separate independent transactions and made 2 dollars, una carry enter calculus

Agbalowomeri:
Why una dey carry primary 1 arithmetic enter algebra kwa.
Person do two separate independent transactions and made 2 dollars, una carry enter calculus

Agba no be my fault, since Oga Rabbi don resume class now, I go dey pay more attention to arithmetic. Make I carry my seat go front.

Mpeace:
I don dey do dis maths since yesterday and na different ansa I just dey get. This year, I don decide say I no too stress my self, na to just copy ansa go submit.

Agbalowomeri:
Why una dey carry primary 1 arithmetic enter algebra kwa.

Person do two separate independent transactions and made 2 dollars, una carry enter calculus

Dr. Agba how the holidays? Happy resumption.

Mcy56:
Fidelity gaping up this morning, so also fcmb. [s]Hope those that are not holding for long term are shining their eyes[/s].
UBA: volume sold yesterday was high. Seems its preparing to move up too.

I am considering accumulation between now and election. It is not JIJO time.

Mpeace:
Abe hep me ansa this question.

With mathematical computations of this nature, the assumption would be that both event are independent of each other. ...in retrospect, the fact that the 1st transaction occured, should not affect the probability of the 2nd occurring.
I quite understand the different views and answers.
There are 3 scenarios;
1) If the said investor had enough funding base to execute both transaction. ...particularly the 2nd.
2) If he had only the initial funding base( $7) and had to get an interest free fund(of additional $1) to execute the 2nd transaction.
AND
3) If he went for scenerio 2 above but got the said additional $1 with interest.

All 3 cases will play out differently. ...however the answer to scenerio 1 and 2 will be $0, while that of scenerio 3 will depend on the accrued interest attached to the borrowed $1.
That said, because both transaction are INDEPENDENT and the event conclusive, scenerio 1 is the only likely mathematical assumption(events are based on this line).
In practice, if the investor could have the initial principal of $7 to invest, then he should well have the addition to make in other to execute the 2nd transaction.
For those wondering how the answer is $0, here's how;
The best approach to computations of this nature is to SET ASIDE each profit derived from each transaction as they are executed. ...otherwise u might end up mixing things up and been confused.
1st he had $7 from which he made $8. ...ROI = $1 (1st transaction)
Now setting aside the $1 profit, he needs $2 to add to his initial $7 to make up the $9 for the 2nd transaction.
...and after execution, that $9 made $10. ...again, ROI = $1
So total ROI = 1+1= $2
But he had added a $2 additional funding, so ACTUAL ROI= 2-2= $0 ...same answer also applies to scenario 2.

He would have made $1 if ONLY he had executed the 2nd transaction by rebuying the said ticket for $8(and sold at $9) BUT NOT $9 to sell at $10. ...so he actually made nothing !!
If in doubt, u can do a test run by assuming that the said ticket was a stock and u were the investor !!
Infact, he would've made a loss if he had tour the path of scenario 3 !!
@Mpeace I do understand why u related this to the act of trading(jijo, swing trade). Sometimes one may actually be making a loss on a spread of transactions thinking that they are in the gain. Scenerio 3 teaches why its very RISKY to borrow for an investment line like this. ...especially the capital market.

The KEY is to have a mathematical MODEL in place that must inculcate one's BEP measured against their ROI, their EXPECTED RETURN measured against their ACTUAL RETURN and the TIME VALUE for money measured against their INVESTMENT HORIZON and GOALS.

Regards.

Mcy56:
Lol. All the ones wey I know don go up o, na to wait make them come down small remain.
...but in the meantime, I wan re-enter Nem, if it comes down to around 2.30 or thereabout.

Jijo some times makes people to miss opportunities. After 1st week and part of 2nd week of January 2019, bear handed over to bull, and bull has been in control, bull will soon surrender to bear, and bear will carry on into election week. Next week Friday is 1st February, been election month. Bull just have tomorrow and part of next week.

Those yet to take position will be opportune to take better position starting from February month. January has presented its own bonanza in the first and second week. February will also give out its own bonanza. I will advice in advance, once you take position try to abolish jijo mentality, to avoid missing opportunities. "The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett.

Nigerians and making simple things complicated

Mcy56:
So na me you wan give upper cut bah? See as I dey look you with side eye.
I know say e get where you dey go na. Okay i don change my mind, the answer is $2 gain.

Noooo. No be so. I actually admire your Jijo moves especially the NEM Jijo. I just want make newbies dey careful when copying you, so they can preserve their capital.

Since no mention was made of the cost of capital and other costs of transaction for either the first or second invested capital, the logical approach to solving this to assume the cost of capital and other associated transaction costs is zero. The profit is $2 (assuming cost of capital and other costs of transaction to be Zero). The lesson here is that we often fall into the trap of analysis paralysis even for very straight forward situations.

onegentleguy:
With mathematical computations of this nature, the assumption would be that both event are independent of each other. ...in retrospect, the fact that the 1st transaction occured, should not affect the probability of the 2nd occurring.
I quite understand the different views and answers.
There are 3 scenarios;
1) If the said investor had enough funding base to execute both transaction. ...particularly the 2nd.
2) If he had only the initial funding base( $7) and had to get an interest free fund(of additional $1) to execute the 2nd transaction.
AND
3) If he went for scenerio 2 above but got the said additional $1 with interest.

All 3 cases will play out differently. ...however the answer to scenerio 1 and 2 will be $0, while that of scenerio 3 will depend on the accrued interest attached to the borrowed $1.
That said, because both transaction are INDEPENDENT and the event conclusive, scenerio 1 is the only likely mathematical assumption(events are based on this line).
In practice, if the investor could have the initial principal of $7 to invest, then he should well have the addition to make in other to execute the 2nd transaction.
For those wondering how the answer is $0, here's how;
The best approach to computations of this nature is to SET ASIDE each profit derived from each transaction as they are executed. ...otherwise u might end up mixing things up and been confused.
1st he had $7 from which he made $8. ...ROI = $1 (1st transaction)
Now setting aside the $1 profit, he needs $2 to add to his initial $7 to make up the $9 for the 2nd transaction.
...and after execution, that $9 made $10. ...again, ROI = $1
So total ROI = 1+1= $2
But he had added a $2 additional funding, so ACTUAL ROI= 2-2= $0 ...same answer also applies to scenario 2.

He would have made $1 if ONLY he had executed the 2nd transaction by rebuying the said ticket for $8 and NOT $9. ...so at $9, he actually made nothing !!
If in doubt, u can do a test run by assuming that the said ticket was a stock and u were the investor !!
Infact, he would've made a loss if he had tour the path of scenario 3 !!
@Mpeace I do understand why u related this to the act of trading(jijo, swing trade). Sometimes one may actually be making a loss on a spread of transactions thinking that they are in the gain. Scenerio 3 teaches why its very RISKY to borrow for an investment line like this. ...especially the capital market.

The KEY is to have a mathematical MODEL in place that must inculcate one's BEP measured against their ROI, their EXPECTED RETURN measured against their ACTUAL RETURN and the TIME VALUE for money measured against their INVESTMENT HORIZON and GOALS.

Regards.

Great analysis. I never averted my mind to all those scenarios.

Stocking:
Nigerians and making simple things complicated

Why you no give us your own answer?
Most times, you cant solve those brain teasers simply like that. It requires in-depth and critical thinking to arrive at the correct answer.

Mpeace:
Great analysis. I never averted my mind to all those scenarios.

See as you give my bosses work to do. Even musician lagbaja is not left out.

Mpeace:
Noooo. I just want make newbies dey careful when copying you, so they can preserve their capital.

Chai! I'll be more careful henceforth.
... but I just mentioned that time that anyone interested in Nem should buy at support ni cos there was nothing that warranted that massive dumping. Dont know the angle you're coming from anyway. No single intention to cause loss for anyone please. What did I stand to gain from that?

Mcy56:
Why you no give us your own answer?
Most times, you cant solve those brain teasers simply like that. It requires in-depth and critical thinking to arrive at the correct answer.

Lool

Mcy56:
Chai! I'll be more careful henceforth.
... but I just mentioned that time that anyone interested in Nem should buy at support ni cos there was nothing that warranted that massive dumping. Dont know the angle you're coming from anyway. No single intention to cause loss for anyone please. What did I stand to gain from that?

That your NEM move was spot on. Some may want to repeat it by selling now and buying even higher, with the hope of selling higher than what they bought. That's where the question comes in. It is a direct opposite of what you did.

Mpeace:
Some may want to repeat it by selling now and buying even higher, with the hope of selling higher than what they bought. That's where the question comes in. It is a direct opposite of what you did.

Then that's their call. Dont know why this should be an issue in the first place cos many people dont do insurance stocks. More reason I was bold to mention it here and, anyone that bought then should have made some gains.
BTW, is Nem suddenly a favourite here now? Interesting!

Already modifying my posts in relation to Nem.
I no get strength to argue with anyone.

You don't need to just do your thing pls. Don't be discouraged ok

Mcy56:
Already modifying my posts in relation to Nem.
I no get strength to argue with anyone.

Michael11stock:
https://trwstockbrokers./2019/01/24/access-bank-plc-diamond-bank-plc-merger-update/

Coined from the link;
"Management estimates synergies from the merger to amount to N150.3 billion over a three-year period. Revenue synergies are estimated at N62.2 billion, while cost synergies are expected to be N88.1 billion. Over 65% of revenue synergies is expected to come from enhanced product offering and cross-selling, while consolidation of procurement and management facility (46%) and cost of funds reduction through better deposit mix (24%) is expected to lead cost synergies for the combined entity.

Non-performing loans concerns
Both banks highlighted that DIAMONDBNK’s Q3’18 numbers were adjusted to reflect additional impairment of N150 billion, placing its current NPL ratio at 40.4%. For the combined entity, this translates to a pre-merger NPL ratio of 14.1% based on 9M’18 numbers. Although management is currently unable to estimate the amount of NPLs that will eventually be transferred to the combined entity, it is optimistic of achieving a single digit NPL ratio by FY’19. It hopes to achieve this by additional write-off of fully provisioned facilities and aggressively pursuing recoveries through the year."


It's ALRIGHT.
I have since said that pre merger and until the near term post merger, ACCESS should only be a short term play.(the financial indices of this synergy suggest so). ...and so unless u are holding for the mid to long term, it will be best to look the way of the other banks in the 1st tier space.

Enough said.

onegentleguy:
As expected here is the notice of the postponement/cancellation of the originally scheduled ACCESS bank EGM.
http://www.nse.com.ng/Financial_NewsDocs/24790_ACCESS_BANK_PLC._CORPORATE_ACTIONS_JANUARY_2019.pdf

The bank hopes to give further guide to this in the near future.

Regards.

Michael11stock:
https://trwstockbrokers./2019/01/24/access-bank-plc-diamond-bank-plc-merger-update/

Also coined from the link;
On the proposed N75 billion rights issue

"Management suggests that there is no more need for its initially proposed tier 1 capital raise through rights, as it believes it has sufficient retained earnings and tier 2 capital (over $250 million dollars to be drawn down by Q1’19) to consummate the deal."

This explains why the planned rights issue was postponed/cancelled.
Again, it might also be the reason for the temporal relief(of downside pressure) in the share price of ACCESS.
however, those looking to 'play the ACCESS route' now should still do so with caution.

Between, an EGM(following an order of the FHC Lagos), will now hold on TUESDAY the 5th of MARCH, 2019.
Note however that this EGM is to sanction the scheme of merger document btw the 2 entities and NOT about the proposed rights. (which has been cancelled)

Mpeace:
Abe hep me ansa this question.

The answer is $2

Let's say our guy started trading with $10
He invested 7 to get 8. This means that his total money becomes $11.
He then invested 9 to get 10. This means his total money is now $12.
Ultimately, be gained $2.

lagbaja:
Since no mention was made of the cost of capital and other costs of transaction for either the first or second invested capital, the logical approach to solving this to assume the cost of capital and other associated transaction costs is zero. The profit is $2 (assuming cost of capital and other costs of transaction to be Zero). The lesson here is that we often fall into the trap of analysis paralysis even for very straight forward situations.

The computation wasn't originally linked to the capital market. ...we only decided to draw a comparison along that line(the stock market) in other to derive practical lessons from it.
The question was just about someone buying(and trading) on tickets. Don't think u inculcate CoT(cost of transaction) for such simple trades.
On ur answer, I think u need to review it again. I'll suggest u relate it to u, and the said trade as a transaction following simple guide.(set aside ur derived profit for each execution and then do a +/- in the end)

Regards.

The bulls are selective in their approach this January. Which stock will they visit next?