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MT1302
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I used the value as 13.5 and 11 because, box indicates the extreme and lowest price and 13.5 is the highest price and i got 23%

imslogic
For the second question, I used the following numbers:

Sale price=$13.75
Purchase price=$10.25
Profit=($3.50/10.25)×100=34%

Where did I go wrong in my reading of the chart? Thanks!

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Hi Experts! bb Bunuel KarishmaB Bismuth83 chetan2u

Bollinger Bands include the price range in which stock trades are most likely to occur based on a moving average. The blue line shows the moving average. The box plots show the common and extreme prices for sales of that stock on each trading day.

My question here is why have we taken Bollinger bands to represent the range (which is not exactly the range, but an estimate of it based on moving avearges) and not box plots that gives us the exact values? My answers are varying because of the same. Please help :)

Thanks and regards,
Nipunh
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Nipunh
Hi Experts! bb Bunuel KarishmaB Bismuth83 chetan2u

Bollinger Bands include the price range in which stock trades are most likely to occur based on a moving average. The blue line shows the moving average. The box plots show the common and extreme prices for sales of that stock on each trading day.

My question here is why have we taken Bollinger bands to represent the range (which is not exactly the range, but an estimate of it based on moving avearges) and not box plots that gives us the exact values? My answers are varying because of the same. Please help :)

Thanks and regards,
Nipunh

We have been given that Bollinger bands are the range in which trades are most likely to occur, not the range in which they actually occur. Bolinger bands are tech analysis tools that help us invest - they indicate the price the stock will take based on volatility. They are not created after the stock moves up or down.

Also, the answer to question 2 is ambiguous. We need to approximate the lowest and the highest values in the box chart but the options are too close. There should have been only 1 option in the 20 to 30 range imo.
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hi, how did you get 11 as the lowest point?
sagniksaha60
­I. During the period of Mar 01-Mar 15, the Bollinger Bands have the largest deviation from the average for the longest period of time, indicating that price during this time were varying quite a lot, making them quite volatile.
Hence, Mar 01-Mar 15 is the correct answer choice.

II. Over the period, the lowest price was approximately $11 and the highest price was approximately $14. Hence, the maximum possible profit on investment is ($14-$11) / $11 =27% approximately.
Hence, 27% is the correct answer choice.
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I got confused about the same.

So, the y axis here is not shown completely. Looking carefully, each marking on the y axis is on the horizontal gridline. Notice the gap between 12 and 14. 10 would lie much below and the graph has been cut (lowest point) at around 11.
miag
hi, how did you get 11 as the lowest point?
sagniksaha60
­I. During the period of Mar 01-Mar 15, the Bollinger Bands have the largest deviation from the average for the longest period of time, indicating that price during this time were varying quite a lot, making them quite volatile.
Hence, Mar 01-Mar 15 is the correct answer choice.

II. Over the period, the lowest price was approximately $11 and the highest price was approximately $14. Hence, the maximum possible profit on investment is ($14-$11) / $11 =27% approximately.
Hence, 27% is the correct answer choice.
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