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. Calculate the profit or loss from the following long/short strategy: You short sell 600 shares of ABC stock at $95 per share and immediately
. Calculate the profit or loss from the following long/short strategy: You short sell 600 shares of
ABC stock at $95 per share and immediately buy the S&P 500 index for half of the value of the
short sale. After 1 year, ABC stock has declined to $70 per share and the value of the S&P 500
has declined by 10%.
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