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Assume that you have a $100,000 account and you are willing to risk 5% of...

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Assume that you have a $100,000 account and you are willing to risk 5% of your capital on an idea. You determine that the there is $4 of risk in your trade. What should be your maximum position size? 1. 5,000 shares 4,000 shares 1. 1,000 shares 1. 1,250 shares

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