PLEASE ANSWER Both PARTS ( 10 MARKS )

1) Fundamental analysis consists of economic, industry and company analysis. Its a comprehensive approach that relies on historical data to project future growth of a firm. Explain the importance of Top-down and Bottom-up Approaches in fundamental analysis.

2) Assume that on January 1, 2022 you sell short 1,000 shares of ANZ common stock at $35 per share. The initial margin is 50% of the value of the short position. On April 1, 2022, you covered the short position by buying the stock at $25 per share? The broker charges $0.50 per share in commission for each transaction.

What is your holding period return?