Question

Determining the weights when short-selling: Is this correct?

I'm wondering if I did this correctly, thus I would love to get an answer. Something tells me that it can't be this simple

Based on your calculation in 5, you decide to short sell $20,000 worth of the overpriced stock and use all of the proceeds of

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Answer #1

This is correct assuming TAP is overpriced stock and KO is underpriced stock.
If the overpricing/underpricing identification is correct then it is this simple only.

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