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?
Correct Answer:
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The ETF is underpriced.Therefore,an arbi...View Answer
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Correct Answer:
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