You have $10000 in cash and you decide to short-sell $5 000 worth of Coca-Cola stock and invest the proceeds ( along with the 10 000$ ) in Intel.

Your resulting position is:

- long $15 000 in Intel

- short $ 5 000 in CocaCola

So the portfolio weights are: Wi = 15 000/10 000= 1.5 and Wc = - 5000/10 000=-0.5 .

Calculate the portfolios expected return and risk.