FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Genius Capital has $200 in capital. It goes long 20 shares of Computer Corp. (CC) at $10 per share and goes short 50 shares of

Genius Capital has $200 in capital. It goes long 20 shares of Computer Corp. (CC) at $10 per share and goes short 50 shares of Laptop Ltd. (LL) at $4 per share on the same day. One month later CC rises to $12.50 per share and LL rises to $5, and Genius Capital unwinds both trades. 


What percentage gain did Genius Capital make from this long/short trade on its $200 of capital? Assume no leverage and transaction costs.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory

Financial Accounting Theory

Authors: William R. Scott

7th edition

132984660, 978-0132984669

More Books

Students also viewed these Accounting questions

Question

★★★★★
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Answered: 1 week ago

Question

★★★★★
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Answered: 1 week ago

Question

★★★★★
1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...

Answered: 1 week ago

Question

★★★★★
Can you describe the initialisation, exploration and exploitation phases of the cat hunting optimisation algorithm?

Answered: 1 week ago

Question

★★★★★
Acrylonitrile (CH2=CHC=N) readily undergoes conjugate addition when treated with nucleophilic reagents. Describe a synthesis of -alanine that takes advantage of this fact. (H3NCH2CH2CO2)

Answered: 1 week ago

Question

★★★★★
=+3 What other information would you need to be confident that the equation in requirement 2 accurately predicts the cost of manufacturing bicycle frames?

Answered: 1 week ago

Question

★★★★★
useful in this situation? Why or why not?

Answered: 1 week ago

Question

★★★★★
A monopolistic firm produces widgets at a constant marginal cost of $10 apiece. One day it discovers a new production process that would lower its marginal cost by $1 per widget. Use a graph to show...

Answered: 1 week ago

Question

★★★★★
1A & 4A Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. For both the current year and one year ago, compute...

Answered: 1 week ago

Question

★★★★★
Refer to the Bulletin of Marine Science (Apr. 2010) study of teams of fishermen fishing for the red spiny lobster in Baja California Sur, Mexico, Exercise 11.63 (p. 614). Recall that simple linear...

Answered: 1 week ago

Question

★★★★★
5-5: The Black-Scholes Option Pricing Model (OPM) Problem 5-3 Black-Scholes Model Assume that you have been given the following information on Purcell Industries: Current stock price = $15 Strike...

Answered: 1 week ago

Question

★★★★★
MGT/726: Emerging Managerial Practices WK 5 - Summative Assessment: Transitioning to a Virtual Environment [due Mon] Exam Content Details & Information Imagine that you have been asked ta make a...

Answered: 1 week ago

Question

★★★★★
Reliability is a probability. Explain the numerical value used to determine the reliability that a manufactured good, piece of equipment, or system performs as intend. How does it work?

Answered: 1 week ago

Question

★★★★★
Help Save & Exit Submit Check my work E7-7 (Algo) Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3] Oahu Kiki tracks the number...

Answered: 1 week ago

Question

★★★★★
1.2.8 A manufacturer can automate a certain process by replacing 20 employees with a machine. The employees each earn 24,000 per year, with payments on the last day of each month, with no sala- ry...

Answered: 1 week ago

Question

★★★★★
how can you obtain the following competencies through RTM (Hospitality, tourism, recreation management)work experiences and courses? Please explain each of them. 1) Community Knowledge 2)...

Answered: 1 week ago

Question

★★★★★
a. (3 points) Is the yield to maturity on a bond the same thing as the required return? b. (3 points) Is YTM the same thing as the coupon rate? c. (2 points) Suppose today a 12 percent coupon bond...

Answered: 1 week ago

Question

★★★★★
What is removed during each of the three stages of wastewater treatment: primary, secondary, and tertiary? During which state would you expect items to be recovered that were accidentally flushed,...

Answered: 1 week ago

Question

★★★★★
Refer to Theory in Practice re: Groupon Inc. Required a. Do you agree with Groupons policy of capitalizing marketing costs for purposes of reporting its earnings to investors? Explain your answer. b....

Answered: 1 week ago

Question

★★★★★
A proponent of ESOs argues that no expense should be recorded for ESOs issued to managers and other employees, since they do not cost the employer anything. On the contrary, the employer receives...

Answered: 1 week ago

Question

★★★★★
John Save plans to invest $ 5,000 in one of the following instruments: Bonds of J Ltd., yielding 12% (a1) Canada Savings Bonds, yielding 8% (a2) On the basis of his knowledge of current economic...

Answered: 1 week ago

Question

★★★★★
Phone Solutions, Inc., specializes in providing call center services for companies that wish to outsource their call center activities. There are two main ways that Phone Solutions has historically...

Answered: 1 week ago

Question

★★★★★
Business Week reports that film production companies are gravitating toward Eastern Europe. Studios there have a reputation of skilled technical work at a relatively low cost. But Bulgaria is even...

Answered: 1 week ago

Question

★★★★★
Compute the 90% confidence interval estimate for the population proportion, p, based on a sample size of 100 when the sample proportion, , is equal to 0.40.

Answered: 1 week ago

Previous Question Next Question