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A hedge fund purchases 50 shares of stock ABC for $80 each and 200 shares of stock XYZ for $30 each. To help pay for
A hedge fund purchases 50 shares of stock ABC for $80 each and 200 shares of stock XYZ for $30 each. To help pay for the purchases, the fund borrowed $9,000 from a bank at 12% per year. a) What are the weights on the hedge fund portfolio? b) During the year stock XYZ pays a $0.10 dividend per share. At the end of one year, the hedge fund sells all its shares of stock ABC at $80 per share and all its shares of stock XYZ at $30 per share. What is the hedge funds holding period return
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