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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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