What a terribly worded vignette.
Two questions:
1.) How come in the Topic Test, Question 4, they never mention the Limit Order on Tuesday that failed in the answer. Is it just fluff? There is a missed opportunity cost since it failed to execute.
2.) This sentence confused me: "Implicit trading costs related to the market order and the limit order did not equal Placid’s targets for these trading cost components. The remaining implicit and explicit costs did equal Placid’s targets for these trading cost components. " - This sounds like it was pretty poorly written. What remaining implicit costs are they even referring too? The first sentence says implicit costs don’t equal, but doesn’t define what those are (even though one of the components in the chart does equal), so how are supposed to know what “the remaining are”. It took me about 10 minutes to do this one question. The answer makes sense, but I needed to that to help explain what the heck the paragraph was trying to say, and it still doesn’t mean anything to me.
I swear sometimes these are written poorly on purpose.