Suppose 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 account and pays you everything earned at the end of the year?
3 answers
[$100 * (1 + .01)^250] - $100
$100 * .01 * 250
there is no compounding of the daily return...
1st response is not applicable
1st response is not applicable
1 answer