Suppose you have 20,000 in cash to invest. You decide to short sell 10,000 worth of Coca-Cola and invest the proceeds from your short sale plus your 20,000 in Intel. Intel stock has a volatility of 50%, Coca-Cola has a volatility of 25% and the stocks are uncorrelated. What is the volatility of a portfolio that is short $10,000 of Coca-Cola and long $30,000 of Intel? Please provide a percentage

a.0

b.76

c.5

d.10

Suppose you have 20,000 in cash to invest. You decide to short sell 10,000 worth of Coca-Cola and invest the proceeds from your short sale plus your 20,000 in Intel. The initial price of Coca-Cola is 40 and increases to 42.40 producing a return of 6%. The initial price of Intel is 25 and increases to 31.50 producing a return of 26%. At the end of the year you decide to liquidate your portfolio. What is the return on your portfolio? Please provide a percentage

Select one:

a.100

b.36

c.5

d.50

Suppose you have 20,000 in cash to invest. You decide to short sell 10,000 worth of Coca-Cola and invest the proceeds from your short sale plus your 20,000 in Intel. The initial price of Coca-Cola is 40 and increases to 42.40 producing a return of 6%. The initial price of Intel is 25 and increases to 31.50 producing a return of 26%.How many shares of Coca-Cola have you short sold and how many shares of Intel do you currently have?

Select one:

a.

Short sold 2,000 shares of Coca cola and invested in 80 shares of Intel

b.

Short sold 40 shares of Coca cola and invested in 400 shares of Intel

c.Short sold 250 of Coca cola and invested in 1200 shares of Intel

d.

Short sold 300 of Coca cola and invested in 12000 shares of Intel