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Problem 8 . What are the market-based variables that Baker and Wurgler (2006) use to extract the market sentiment index? How are these variables related

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Problem 8 . What are the market-based variables that Baker and Wurgler (2006) use to extract the market sentiment index? How are these variables related to the market sentiment index? Given the results documented in Baker and Wurgler (2006), design a portfolio strategy to profit from market sentiment-related mispricing. Please consider two scenarios: with and without short-sale constraints

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