3.3A Which Stocks do I Buy

Assuming this chart represents the entire market, how many stocks are in the market?

What was the share price of AVO on 1/1/2023?

What percent did the entire market go up in 2023? (Remember that this chart covers the entire market)

How many of the stocks beat the market average?

The amount by which a stock beats the average is defined as alpha. In dollars, what was the alpha of CARR in 2023?

In dollars, what is the sum of the alpha of all the stocks for 2023?

If CARR finished the year at $115 instead of $112, what would be the sum total of alpha of all the stocks? Hint: The average would change

If you wanted to buy a share of AVO and today’s price is $109, but you happened to somehow know FOR SURE that the price would drop to $80 tomorrow. What’s the most you should be willing to PAY for the share?

If you owned a share of CARR, currently priced at $112 and you somehow happened to know for sure that tomorrow the price would jump to $130, what is the LEAST you would be willing to SELL your share for?