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One last question. Let's say you're feeling good about Chipotle, as compared to Starbucks. You invest $1,000 in a long position in Chipotle and short
One last question. Let's say you're feeling good about Chipotle, as compared to Starbucks. You invest $1,000 in a long position in Chipotle and short $500 in Starbucks. The market has a great year, and a year later you see that your Chipotle stock is worth $1,200, a gain of 20%. Starbucks also did well in the strong economy, and their stock soared by 22%--you lose $110 on your short position. You made a total profit of $90. Was this a strategically sound decision? Yes No
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