Question
Consider the following two stocks, GM and Ford. You believe Ford is undervalued, and would like to allocated 1 million dollars to the trade. You
Consider the following two stocks, GM and Ford. You believe Ford is undervalued, and would like to allocated 1 million dollars to the trade. You also would like to maintain neutrality with respect to the market factor. How would you implement this equity market-neutral strategy?
| Stock | Beta |
| Ford | 0.8 |
| GM | 0.5 |
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The Economics Of Money Banking And Finance
Authors: Keith Bain, Peter Howells
1st Edition
0582278007, 9780582278004
