Problem 1: Portfolio vs trading strategy Assume that R1, R2, and R3 are individual stocks, Ry is the risk free rate and RM is market portfolio. Could you tell which of the following are trading strategies or portfolios. For each portfolio and trading strategy that you have identified explain in words what that portfolio/strategy involves doing. a) R2 - R b) 5(RM-R-) + 3(R, -R) c) R1 + R2 + R3 d) 3Rm +-R, PR Problem 1: Portfolio vs trading strategy Assume that R1, R2, and R3 are individual stocks, Ry is the risk free rate and RM is market portfolio. Could you tell which of the following are trading strategies or portfolios. For each portfolio and trading strategy that you have identified explain in words what that portfolio/strategy involves doing. a) R2 - R b) 5(RM-R-) + 3(R, -R) c) R1 + R2 + R3 d) 3Rm +-R, PR