Let
x = SHPIX and RYURX amounts
Then the rest (6000-2x) is RYCWX
Now just add up the losses
.04x + .03x + .06(6000-x) = -260
Find x and you're almost done
Inverse mutual funds, sometimes referred to as “bear market” or “short” funds, seek to deliver the opposite of the performance of the index or category they track and can thus be used by traders to bet against the stock market. The following table shows the performance of three such funds as of February 27, 2015:
SHPIX (Short Smallcap Profund) = 4% Year-to-Date Loss
RYURX (Rydex Inverse S&P 500) = 3% Year-to-Date Loss
RYCWX (Rydex Inverse Dow) = 6% Year-to-Date Loss
You invested a total of $6000 in the three funds at the beginning of 2015, including equal amounts in SHPIX and RYURX. Your total year-to-date loss amounted to $260. How much did you invest in each of the three funds?
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