Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A hedge fund manager took a short position worth $ 5 million and a long position worth $ 5 million. If the hedge fund manager

A hedge fund manager took a short position worth $5 million and a long position worth $5 million. If the hedge fund manager generated $300,000 net profit from a trade, what return was achieved?
Note: this includes the stock lending fee, so disregard the fee for this question.
4.5%
2.252%
6%
3%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Business Finance

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

6th Edition

0201538997, 978-0201538991

More Books

Students also viewed these Finance questions

Question

=+b) State the hypotheses.

Answered: 1 week ago

Question

Is this public actively seeking information on this issue?

Answered: 1 week ago

Question

How much loyalty does this public have for your organization?

Answered: 1 week ago

Question

How influential does the organization see this public as being?

Answered: 1 week ago