Suppose that money invested in a hedge fund earns 1% per trading day. There are 250 trading days per year. With an initial investment of $100, what will be your annual return assuming the manager puts all of your daily earnings into a zero interest-bearing checking amount and pays you everything earned at the end of the year?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 1FPE: What makes for a good investment? Use the approximate yield formula or a financial calculator to...
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Suppose that money invested in a hedge fund earns solve this general accounting question

Suppose that money invested in a hedge fund earns 1% per trading day.
There are 250 trading days per year. With an initial investment of $100,
what will be your annual return assuming the manager puts all of your
daily earnings into a zero interest-bearing checking amount and pays
you everything earned at the end of the year?
Transcribed Image Text:Suppose that money invested in a hedge fund earns 1% per trading day. There are 250 trading days per year. With an initial investment of $100, what will be your annual return assuming the manager puts all of your daily earnings into a zero interest-bearing checking amount and pays you everything earned at the end of the year?
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