Traders strategy to beat the benchmark

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Reference no: EM131235560

A day trader has $10 million in assets. She buys and sells 30% of her portfolio every day.

Assume this day trader is very good and incurs single round-trip transaction costs of only 10 cents on a $30 stock. Roughly, by how much does this day trader's strategy have to beat the benchmark in order to make this a profitable activity?

Assume that the trader could earn $200,000 in an equivalent alternative employment and that there are 255 trading days per year.

Reference no: EM131235560

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