Hello. Please help me with this project:

Project 3: A New Hedge Fund

Biases in investment decisions as well as corporate decisions can potentially generate inefficiencies in market prices. Equity analysts and other market participants may even exacerbate these effects.

Can ?smart? investors identify and exploit short-term inefficiencies in the market?

What is the main idea and why do you expect the idea to work? ?

Please explain the trading strategies clearly. Outline the portfolio construction and rebalancing procedure.

What factors generate the inefficiencies you are trying to exploit and why do they persist? How long do the inefficiencies persist and why? ?

Why have other smart investors not yet exploited the opportunity? What types of risks and constraints do they face that may prevent them from successfully exploiting the opportunity? ?

Would common investors be able to exploit this opportunity? Why or why not? ?

Provide some evidence (even anecdotal) to show that the strategy ?works?. ?

Obtain data and perform empirical analysis on your own to demonstrate that the trading strategy yields superior performance.

Andrea Brenes, FIN 686 - 32 Professor Alok Kumar November 30, 2016 Project 3: A New Hedge Fund Biases in investment decisions as well as corporate decisions can potentially generate inefficiencies in market prices. Equity analysts and other market participants may even exacerbate these effects. Can \"smart\" investors identify and exploit short-term inefficiencies in the market? 1. What is the main idea and why do you expect the idea to work? 2. Please explain the trading strategies clearly. Outline the portfolio construction and rebalancing procedure. 3. What factors generate the inefficiencies you are trying to exploit and why do they persist? How long do the inefficiencies persist and why? 4. Why have other smart investors not yet exploited the opportunity? What types of risks and constraints do they face that may prevent them from successfully exploiting the opportunity? 5. Would common investors be able to exploit this opportunity? Why or why not? Bonus Questions: 6. Provide some evidence (even anecdotal) to show that the strategy \"works\". 7. Obtain data and perform empirical analysis on your own to demonstrate that the trading strategy yields superior performance