Replicating Portfolio

[Vandy]

Hi David,
I am following GARP material and have difficulty in understanding replicating portfolio and arbitrage trade. Do you have any leads on that?

 

[Mathrio]

I also have a hard time understanding page 6 of the tuckman reading for market risk. Where are the value for the replicating portfolio coming from?

If anyone could explain that would be great!

Edit: After searching a little i found this.

https://forum.bionicturtle.com/threads/replicating-portfolio.5537/