Suppose a (very skilled) fund manager earns a safe return of 0.7% per trading day. There are 252 trading days per year. (a) What will be your annualized holding period return on $100 invested in the fund if the manager allows you to reinvest in her fund the 0.7% you earn each day? (b) What will be your annualized holding period return assuming the manager puts all of your daily earnings into a zero-interest-bearing checking account and pays you everything earned at the end of the year?

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A: Information Provided: Annuity amount = $1.4 million per year Interest rate = 8%

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A: Here,

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A: Here,

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A:

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