Company A and Company B are both banks offering similar services and their stocks are historically very positively correlated. A hedge fund manager decides to take a short position on Company A for $5 million and a long position on Company B for $5 million. Use the information below to determine how much profit the manager will make from the trade, assuming it was initiated and closed in 150 days. Initiated Position Closed position Annual Stock Lending Fee
Company A $2.50 $2.32 15bps
Company B $2.00 $21.5

As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. as a result, she loses half of her productive farmland. if the property of diminishing returns applies to all factors of production, she should expect to seea. a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. c. an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.