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Deploy a market neutral trading strategy

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You are planning to deploy a Market Neutral trading strategy on stocks in the industrial sector. You think that Stock A, which has a beta of 1.28, is overvalued and that Stock B, which has a beta of 1.41 is undervalued. What percentage of your portfolio should be allocated to a short position in Stock A? State your answer as a percentage, not in decimal form (i.e., 13.21, not .1321). Your answer should have two decimal places of accuracy.

Reference no: EM133111159

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