Question: 17. A trader has been given two trades to execute with the following characteristics. What tactics do you recommend? Average Daily Trade Size (shares) Volume

17. A trader has been given two trades to execute with the following characteristics. What tactics do you recommend?

Average Daily Trade Size (shares) Volume (ADV) Price Spread (%) Urgency A 200,000 6,000,000 10.00 0.03 High B 150,000 200,000 10.00 0.60 High 18. A trader must rebalance a pension plan’s actively managed $500 million U.S. small-cap equity portfolio to an S&P 500 indexed portfolio in order to effect a change in the plan’s strategic asset allocation. He is told that his primary goal is to minimize explicit costs in this rebalance. What should his trading strategy be?

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