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