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 = $25/share Price B = $10/share Initial position, M longs 2 shares of A and short 5 shares of B.Scenario 1 - Market is up by 15%, A is up 20%, B is up 10%, the net payoff of M's portfolio is Multiple Choice 5.2 dollars s 5 dollars 3.5 dollars none of the above 4.5 dollars 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 = $25/share Price of B = $10/share Initial position, M longs 2 shares of A and short 5 shares of B.Scenario 2 - Market is down by 8%, A is down by 5%, B is down by 10%, the net payoff of M's portfolio is Multiple Choice 5.2 dollars 4.5 dollars 3.5 dollars 2.5 dollars none of the above