Use the Following Information to Answer the Question(s)below

question 16

Essay

Use the following information to answer the question(s)below.
An exchange traded fund (ETF)is a security that represents a portfolio of individual stocks.Consider an ETF for which each share represents a portfolio of two shares of Apple Inc.(APPL),one share of Google (GOOG),and ten shares of Microsoft (MSFT).Suppose the current stock prices of each individual stock are as shown below:
-If the ETF is currently trading for $1200,what arbitrage opportunity is available? What trades would you make?

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Definitions:

Self-Report Measure

Questionnaires asking people to report on their own personalities, usually through rating themselves on a list of adjectives or statements.

Personalities

Refers to the individual differences in characteristic patterns of thinking, feeling, and behaving, encompassing various traits and tendencies.

Reverse-Scored Items

Items scored in the opposite direction from the responses.

Response Scale

A method used in questionnaires and surveys to measure the intensity or frequency of respondents' feelings, attitudes, or behaviors.