Basket Return and Dollar P&L Calculation
You are running a 3-name basket with weights $(0.50, 0.30, 0.20)$. Over the last minute, the three names moved by $+1.20\%$, $-0.60\%$, and $+0.15\%$ respectively. The basket notional is $\
{,}000{,}000$.
(a) What is the basket return in basis points?
(b) What is the dollar P&L on the basket?