Please show steps on how to solve these problems please!

5. Suppose I sold short 2 shares of a stock at time t = 1 at the price of $100/share. At time t = 2, I bought back 1 share at $120fshare, and at time t = 3, I bought back 1 more share at SEQ/share. 'What my overall gain or loss in dollar terms? 6. Assume that the expected return of the US. stock market is 10% and the volatility is 20%. Suppose that, instead of buying stocks, I choose to short-sell stocks all the time. What would be the expected return and volatility of my strategy? 2. Suppose stock X has a price of $100 today. There are three possible scenarios one year later as detailed below. Let R denote the one-year return of stock X (today to one year later). Scenario 1 2 3 Probability 20% 50% 30% Stock price $80 $105 $140 Dividend $0 $5 $5 Please calculate: (a) R in each of these three scenarios. (b) The volatility of R. 1. Is it possible for a stock to have positive arithmetic average rate of return but lose money overall? 0 If your answer is yes, please give a concrete numerical example (e.g. rst period return 2 .., second period return 2 ..., etc). o If your answer is no, please explain why