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Heeeelp An investor has $10000 then decides to construct the following portfolio Stock Position Price Number of shares A Long $100 750 B Long $75
Heeeelp
An investor has $10000 then decides to construct the following portfolio Stock Position Price Number of shares A Long $100 750 B Long $75 800 Short $230 250 D Short $140 300 1) How much cash does the investor have after building the portfolio 2) Calculate the weight of each security in the portfolio 3) In one year, the prices of the securities are as follows Security Price Stock A $85 Stock B $80 Stock C $240 Stock D $170 The investor decides to close all positions, a) How much cash will he/she have after closing all positions assuming that any cash is invested/borrowed at the risk free rate of 3.5%? b) Calculate the rate of return of the investorStep by Step Solution
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