Currently a stock index stands at 100 and the leveraged ETF is selling for $100. The ETF should generate a return that is twice the daily return on the index. Over the next 21 days the value of the index and its daily percentage change are as follows:

What is the value of the ETF at the end of each day? Notice that at the end of 21days, the index is back to its starting value of 100. What is the value of the ETF at the end of 21 days? Suppose that on day 22, the index rises 50 percent from 100 to 150; what is the percentage change in the ETF from day 1 through day 22? If you bought the ETF on day 1 and held it through day 22, did you earn the leveraged return that you expected?

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Value of the Index 100 110 100 90 80 70 90 110 Day Daily Percentage Change 10.0% -9.1 -10.0 -12.5 28.6 22.2 102 5.0 38 20 61 ? 67 82 53266768250 2 0051958586960 3000909090020 9012345678901 11122