Hello Dears,

i have a problem understanding the calculation here.

the solution to question 2 is clear until they reach the point and write:

"it appears that Issac’s strategy will not be constrained until the portfolio reaches about 1 billion in size (1.5 Million / 0.15%).’’

where do they get the the 0,15% from?

furthermore: ‘‘if the level of AUM excceds 1 billion, his position size constraints will require the portfolio to hold a larger number of smaller-cap positions.’’

I don’t really get the conclusion.

can somebody help? thanks