You currently have $1,000 to invest. You feel very good about Stock X, and you wish to
Fantastic news! We've Found the answer you've been seeking!
Question:
You currently have $1,000 to invest. You feel very good about Stock X, and you wish to buy $3,000 worth of Stock X.
You plan to achieve this by short selling $2,000 worth of Stock Y.
What is the expected return on this portfolio, if the expected return on Stock X is 10 percent and the expected return on Stock Y is 5 percent?
Posted Date: