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and 5000 shares of Micron valued at $2 each. Suppose you use the cash from the short sale to buy $20,000 of Micron (10,000

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and 5000 shares of Micron valued at $2 each. Suppose you use the cash from the short sale to buy $20,000 of Micron (10,000 shares). Possibility 1: In one year, the price of Intel is $25, the price of GM is $15, and the price of Micron is $2.00. Possibility 2: In one year, the price of Intel is $15, the price of GM is $15, and the price of Micron is $2.00. (A) What are your assets, liabilities and equity when you first open the position? (B) For each case described above, what is the value of total assets, and total investment equity in your portfolio in one year? What is the percent change in equity? (C) For each case described above, find the percent change in equity using portfolio weights.

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