A share trader has a policy of selling a share if its share price drops more than one-third of its purchase price. In January, the investor bought shares in Netron
(an electronics company) for 90c per share. The table below shows the price of the Netron share at the end of each month.
If the trend in the under-performance of the Netron share price continues, identify, using the least square trendline method, when the investor is likely to sell his holdings in Netron shares.
|
Month
Share price (c)
|
Jan
90
|
Feb
82
|
Mar
78
|
Apr
80
|
May
74
|
Jun
76
|
Jul
70
|