Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On August 10th the MSCI announces the Index rebalance on September 1st. The research team of DB sends the list of ins and outs. Assume

On August 10th the MSCI announces the Index rebalance on September 1st. The research team of DB sends the list of ins and outs.

Assume Tesla has a 20% increase in weight in the Index, which generates a $5bn worth of demand.

Assume Tesla's price on August 13th is up 5% and the stock has traded $3bn more than the average daily volume each day over the past 3 days

Is this trade overcrowded?

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

Students also viewed these Finance questions

Question

Simplify the expression. Write the result using pos (-1)/(p^(-2))

Answered: 1 week ago