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In a Long short equity strategy, fund manager M picks 2 stocks Stock A is expected to do better than overall market Stock B is
In a Long short equity strategy, fund manager M picks 2 stocks Stock A is expected to do better than overall market Stock B is expected to do worse than overall market Today Price of A$20/share Price of B = $8/share Initial position, Mlongs 2 shares of A and short 5 shares of B. Scenario 1 - Market is up by 15% Als up 20%, B is up 10% Multiple Choice The value of your holdings in A is now worth $50 0 The value of your holdings in Ais now worth $48 The value of your holdings in Als now worth 60 O The value of your holdings in A is now worth 562 None of the above
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