Suppose a hedge fund manager earns 1% per trading day. There are 250 trading days per year. Answer the following questions: a. What will be your annual return on $100 invested in her fund if they allow you to reinvest in their fund the 1% you earn each day? b. What will be your annual return assuming they put all of your daily earnings into a zero-interest- bearing checking account and pays you everything earned at the end of the year? Please answer correctly, and provide the work and a slight explanation alongside, thank you its appreciated
Suppose a hedge fund manager earns 1% per trading day. There are 250 trading days per year. Answer the following questions: a. What will be your annual return on $100 invested in her fund if they allow you to reinvest in their fund the 1% you earn each day? b. What will be your annual return assuming they put all of your daily earnings into a zero-interest- bearing checking account and pays you everything earned at the end of the year? Please answer correctly, and provide the work and a slight explanation alongside, thank you its appreciated
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Suppose a hedge fund manager earns 1% per trading day. There are 250 trading days per year.
Answer the following questions:
a. What will be your annual
b. What will be your annual return assuming they put all of your daily earnings into a zero-interest- bearing checking account and pays you everything earned at the end of the year?
Please answer correctly, and provide the work and a slight explanation alongside, thank you its appreciated
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