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Calculate the trading costs of the two stocks from (v) as the bid-ask spread plus the price impact. Assume a hedge fund intends to trade$2

Calculate the trading costs of the two stocks from (v) as the bid-ask spread plus the price impact. Assume a hedge fund intends to trade$2 million in each of the two stocks and faces the same price impact as anyone. The fund expect to complete the opening/closing of the positions in one day and intends to hold the positions for 6months. 



How large the return to the strategy involving only those two stocks has to be before the hedge fund starts making profit?

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