A stock broker received an order from a client to buy 10,000 shares of BHP...
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A stock broker received an order from a client to buy 10,000 shares of BHP within ten minutes. Within those ten minutes, the following trades took place. The broker's trades are marked with a "", (a) Calculate the volume-weighted average price. (b) Calculate the stock broker's volume-weighted average price. (c) Using the VWAP method, assess the broker's execution performance. (d) The broker's final trade executed at the best ask price available in the market. At the time, the best bid price was $78.60. Calculate the relative spread at the time of the trade. (e) Discuss the advantages and disadvantages of using the volume-weighted average price as tool for evaluating trading performance
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A stock broker received an order from a client to buy 10,000 shares of BHP within ten minutes. Within those ten minutes, the following trades took place. The broker's trades are marked with a "", (a) Calculate the volume-weighted average price. (b) Calculate the stock broker's volume-weighted average price. (c) Using the VWAP method, assess the broker's execution performance. (d) The broker's final trade executed at the best ask price available in the market. At the time, the best bid price was $78.60. Calculate the relative spread at the time of the trade. (e) Discuss the advantages and disadvantages of using the volume-weighted average price as tool for evaluating trading performance 