Write a short report (not more than 5 pages, double-spaced) developed around the following:What is the main idea and why do you expect the idea to work?{listtext2.}Please explain the trading strategies clearly. In particular, please outline the portfolio construction and rebalancing procedure.{listtext3.}What factors generate the inefficiencies you are trying to exploit and why do they persist? How long do the inefficiencies persist and why?{listtext4.}Why have other smart investors not yet exploited the opportunity? What types of risks and constraints do they face that may prevent them from successfully exploiting the opportunity?{listtext5.}Would common investors be able to exploit this opportunity? Why or why not?}