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Consider the total returns of the following six stocks from January 2021 to June 2021: Stock 1 Stock 2 Stock 3 Stock 4 Stock 5
Consider the total returns of the following six stocks from January 2021 to June 2021: Stock 1 Stock 2 Stock 3 Stock 4 Stock 5 Stock 6 Jan-2021 Feb-2021 Mar-2021 Apr-2021 May-2021Jun-2021 -0.10 0.10 0.07 0.00 -0.11 -0.12 0.15 -0.05 -0.01 0.10 0.20 -0.05 -0.13 0.06 0.06 -0.02 0.01 0.09 0.09 -0.01 0.02 0.03 0.04 0.04 0.12 -0.15 -0.11 0.19 0.15 -0.09 -0.09 0.03 0.07 -0.08 0.04 -0.06 Assume you are able to perfectly predict the next month return of each stock, but you are only able to implement a tercile hedge portfolio to exploit your information. If you invested $100 in the tercile hedge portfolio at the start of January 2021, how much would you have at the end of June 2021? Consider the total returns of the following six stocks from January 2021 to June 2021: Stock 1 Stock 2 Stock 3 Stock 4 Stock 5 Stock 6 Jan-2021 Feb-2021 Mar-2021 Apr-2021 May-2021Jun-2021 -0.10 0.10 0.07 0.00 -0.11 -0.12 0.15 -0.05 -0.01 0.10 0.20 -0.05 -0.13 0.06 0.06 -0.02 0.01 0.09 0.09 -0.01 0.02 0.03 0.04 0.04 0.12 -0.15 -0.11 0.19 0.15 -0.09 -0.09 0.03 0.07 -0.08 0.04 -0.06 Assume you are able to perfectly predict the next month return of each stock, but you are only able to implement a tercile hedge portfolio to exploit your information. If you invested $100 in the tercile hedge portfolio at the start of January 2021, how much would you have at the end of June 2021
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