Question
What is the return on Portfolio A that contains a long margined (IM = 52%) position in 65% of American Airlines and the remainder in
What is the return on Portfolio A that contains a long margined (IM = 52%) position in 65% of American Airlines and the remainder in the risk-free asset? Risk free rate = 2.55% Holding period 15-Sep to Nov-10 AAL Stock info Today:15-Sep 35.84 22-Sep 28.31 29-Sep 41.01 6-Oct 41.00 13-Oct 38.99 20-Oct 42.35 27-Oct 35.84 3-Nov 42.26 10-Nov 41.22
a) The return on American Airlines (AAL), Raal= b) The Return on the portfolio, Rpa=
If you cannot calculate portfolio return with the given information The return on the long margined position in American Airlines would be fine, thank you.
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