Calculate the delay cost incurred in trading the LIM order.

Bradley also sees that following a 10 a.m. Federal Reserve press conference, the market rose significantly throughout that day. He wants to separate out the pricing effect of this general market movement from the cost of trading LIM. Bradley and the trader agree to use an arrival price benchmark for this analysis and gather the following data related to a broad market index:

• Index price at time of order entry: \($2\),150

• Index volume-weighted average price over trade horizon: \($2\),184

• LIM beta to index: 0.95 Although focused on long-term value, North Circle Advisors will exploit temporary mispricings to open positions. For example, portfolio manager Bill Bradley pegged LIM Corporation’s fair value per share at \($28\) yesterday; however, LIM’s stock price seems to have overreacted to a competitor announcement prior to market open today. The follow events unfold over the course of the morning:

• PRIOR CLOSE: LIM closed at \($30.05\) • PRE-MARKET: LIM priced at \($20.34\) • MARKET OPEN: LIM opens at \($22.15\) • 10:00 AM: LIM trading at \($23.01\) • 10:00 AM: Bradley confirms the overreaction with target price of \($28\) • 10:05 AM: Bradley instructs trader to buy 25,000 shares, with a limit price of \($28\) when LIM is trading at \($23.09\) • 10:22 AM: Trader finishes the buy with an average purchase price of \($23.45\) Bradley and the trader conduct a post-trade evaluation. In picking an appropriate reference price, the trader asks Bradley if that would be a pre-trade, intraday, post-trade, or price target benchmark.