Question 1: 130/30 mutual fund

Construct the balance sheet for a 130/30 hedge mutual fund. Specifically, the fund seeks to have $130 in long equity positions and $30 in short equity positions per $100 of the funds capital (NAV). You can assume that the mutual fund is compliant with the investment company act of the 1940.

Assets		Liabilities and Equity
Long security positions	$130	Equity supporting long pos.
		Equity supporting short pos.
		Free Equity
		Total Equity (NAV)	$100
Cash in money market
Initial margin (reg-T)		Margin loan
Cash proceeds from short sale		Short security positions	$30
Total Cash		Total Liabilities
Total A		Total E + L