In current study wehave single stock whose price observe a switching geometric Brownian motion. Also,
the stockpay no dividends. Given the current price of a stock the sold axiom consists of target price and astoploss limit. A ‘sell’ decision is made when the price reach either the target price or the set stop-loss
limit. The main purpose is to benefit investors. During their financial careers, One investors often pick up
the a bad weak stock or the purchase it made is at the wrong time in reality. So, In both the cases, it isComment [A1]: In academic writing, it isimportant that the objective is mentioned after the
supporting information/background of the study.
Hence, this part has been moved to a later instance.
Comment [A2]: A research paper should notcontain any extra/unnecessary information as it does
not significantly contribute to the presentation of an
author’s idea. Hence, this information has beendeleted.

often wise and necessary to sel sell it such a stock as soon as possible to stop curtail losses. In practice, atarget prices, are is typicallyaround a gain of 15 % – 5 5 % and a stop-loss limit s generally vary from

Comment [A3]: No spaces are added before andafter an en dash in a range.

5 % to to 20 % . It isHowever,, however, it is not a good idea to adopt uniform rules for booking profits
and losses taking. because Each each stock different, has it’s own characteristics that call for . Moreocer, it
Comment [A4]: These two sentences have been
merged as the second sentence provided supporting
information for the first sentence.

should be treated differently with different liquidation rules .

In this study, we consider set of targetprices and stop-loss limits and choose a target price andstop-loss Limit in that set to enhance an expected reward function . We aim, at deriving this price limits…
In addition, we get the expected target period and the probability of making and losing

money. In

practice, investorsa frequently used critera for measureing the portfolio performance of portfolio ias theComment [A5]: A substantive edit ensures thatthe text of a manuscript is structurally accurate andevery information is placed at the correct instance.
Hence, this part has been moved to a later instance.

percentage return pr over a given timeunit time. HoweverHowever, such thata criterion has lead to manytransactions because of it encourages taking small profits-taking within the a short brief holding time
period (τ0) and increases transaction costs. For those reasons and others, it may be. Clearly, such acriterion is not-unsuitable to for retail investors, especially those because whoof the cannotlimited time
available for constantly monitor their portfolios trading and Additional transaction costs. In contrast, A a
discount factor, in contrast reducesules out very the frequency and cost oft transactions because it
replaces the time as a determinant of holding periodfactor is replaced by discount rate. Theis daAll material in this document is the intellectual property of Crimson Interactive Pvt. Ltd. The use of information and content inthis document in whole or in part is forbidden unless express permission has been given in writing by Crimson Interactive Pvt.
Ltd.

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Comment [A6]: Emphasizing the correct
information is necessary to clearly convey theintended meaning. We have revised this instance toclearly mention why the criterion is unsuitable forretail investors.
Comment [A7]: Transitional phrases that arenecessary to denote the shift in the tone of sentences
should be mentioned in the beginning of sentences toensure clarity among readers.

discounted-reward function is natural in many financial problems commonly applied to many financialproblems.
This study examines a no-dividend stock with prices that exhibit regime-switching geometric
Brownian motion. We consider sets of stop-loss limits and target prices and determine those that promise
to enhance an expected reward function. We aim to derive these limits as well as an expected holding
period and probabilities of making and losing money.

All material in this document is the intellectual property of Crimson Interactive Pvt. Ltd. The use of information and content inthis document in whole or in part is forbidden unless express permission has been given in writing by Crimson Interactive Pvt.
Ltd.

www.enago.com | www.enago.jp | www.enago.com.tr | www.enago.com.br | www.enago.de | www.enago.tw |www.enago.cn | www.enago.co.kr | www.enago.ru