Compare and contrast the terms “long position” and “short position”. Provide appropriate examples, Discussion Assignment #3

IMPORTANT NOTE: The questions must be address in its full context. These questions are an opportunity to go outside the box to demonstrate your analytical, integrative, problem- solving and critical thinking skills using the knowledge acquired in your readings. As a result, it is very important to pay close attention to the questions and be able to conduct your discussions in the context of your question.  – Please keep this in mind when you complete this assignment.

You must expand your ideas further. Analysis must be deep and very instructive. 

ANSWER THE FOLLOWING QUESTIONS. Each question should be answered in at least 300 words. Quality of content and use of course and outside-of-course resources to support your position or analysis. The answers should not be in the form of essay, just straight to the point- Work must be original and cite your sources.

Please be sure to answer the question completely but specifically in well-written complete sentences. 

Include references

  1. Compare and contrast the terms “long position” and “short position”.  Provide appropriate examples.
  2. List the three reasons the Treynor-Black model “…has not taken the industry by storm”.
  3. Why might individuals purchase futures contracts rather than the underlying assets?
  4. What is the difference in cash flow between short-selling an asset and entering a short futures position?
  5. Conventional wisdom says one should measure a manager’s investment performance over an entire market cycle. What arguments support this contention? What arguments contradict it?

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