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Exercise 12 Mrs. Jones has $71100 and wants to take the following positions in these three stocks Stock Price Number of shares Position S1 231

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Exercise 12 Mrs. Jones has $71100 and wants to take the following positions in these three stocks Stock Price Number of shares Position S1 231 1200 short S2 122 2900 long S3 75 700 long 1) How much cash will she have after building her portfolio? (5 pts) (A) 39600 (B) 95200 (C) 70300 (D) 19700 2) Calculate the rate of return of this portfolio if one year later the prices are Stock S1 S2 S3 Price 118 78 241 and the risk-free rate is 4.56%. (10 pts) (A) 42.41% (B) 42.14% (C) 42.25 % (D) 41.71% Exercise 12 Mrs. Jones has $71100 and wants to take the following positions in these three stocks Stock Price Number of shares Position S1 231 1200 short S2 122 2900 long S3 75 700 long 1) How much cash will she have after building her portfolio? (5 pts) (A) 39600 (B) 95200 (C) 70300 (D) 19700 2) Calculate the rate of return of this portfolio if one year later the prices are Stock S1 S2 S3 Price 118 78 241 and the risk-free rate is 4.56%. (10 pts) (A) 42.41% (B) 42.14% (C) 42.25 % (D) 41.71%

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