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As a private Investor you are used to analyze and work with three shares A, B and C. On February 15 th you designed a

  1. As a private Investor you are used to analyze and work with three shares A, B and C. On February 15th you designed a Long-Short Strategy, that you implemented by Buying A and B and selling Short C. The table presented Below contains a description of your strategy. In March 30Th you decided to unwind the deal closing all your positions.

Stock A

Stock B

Stock C

Initial Price (Feb. 15)

25

15

10

Position

Long

Long

Short

Number of Shares

15,000

20,000

20,000

Final Price (March 30)

28

14

8.50

Dividends

Record Date

March 25th

No dividends

No dividends

Amount

0.30

0

0

The Borrowing fees for the Stock C are 10% (Act/360) (43 days from Feb 15 to March 30), and the Fees are calculated over the Initial Market Equivalent position on Stock C.

Calculate the TOTAL RETURN of your strategy calculated over the NET INVESTMENT.

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