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Two stocks have the following price dynamics Stock A Day1 100 Day2 90 Day3 81 Stock B Day1 150 Day2 165 Day3 180 Suppose you

Two stocks have the following price dynamics

Stock A

Day1 100

Day2 90

Day3 81

Stock B

Day1 150

Day2 165

Day3 180

Suppose you hold a portfolio of stock A and B, each with 0.5 weight. What is the return of this portfolio on day 2?

How should you calculate returns of this portfolio over two days?

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