hard · Market Microstructure
A portfolio manager decides to buy 40,000 shares of a security when the midpoint is $50.00. The trader executes 30,000 shares at an average price of $50.12. The order is then cancelled when the midpoint reaches $50.20.
What is the Opportunity Cost component of the Implementation Shortfall?
- $5,600
- $800
- $2,000
- $3,600
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