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In an active equity strategy, an investor instituting a substitution trade: O a Wishes to replace an existing holding with one that has a better
In an active
equity strategy, an investor instituting a substitution trade:
O a
Wishes to replace an existing holding with one that has a better risk adjusted return
O b. Exits a stock with P/E multiple equal to its
historical average
O c. Hopes to avoid a company facing deteriorating fundamentals
O d. Incurs an opportunity cost in the transaction
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