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A trader at the brokerage firm FastEx receives an order to purchase 2,000 shares of stock XYZ. At the time the order was received the

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A trader at the brokerage firm FastEx receives an order to purchase 2,000 shares of stock XYZ. At the time the order was received the market price of XYZ (i.e., the midpoint of the best bid and ask quotes) was $50.00. The trader then proceeds to execute the order. Initially the trader is able to purchase 1,000 shares at $50.50. Due to lack of liquidity the trader waits until the following day to execute an additional 800 shares at $51.00. Because t1 .ice has risen the trader decides not to purchase any more shares. Five days later (t=7) the stock closes at $52. FastEx charges brokerage of $0.08 per shafe, What is the opportunity cost (in \%) component of Implementation shortfall? Select one: a. 1.84% b. 1.44% c. 0.4% d. 4%

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