1. On February 1, a hedge fund initiated activities with a trading account of $1,000,000 and 20,000 outstanding shares of stock. On January 2, the fund realized $30,000 in trading profits. On February 3, the fund again realized $30,000 in trading profits, but paid a dividend of $30,000. On February 4, the fund incurred $50,000 in trading losses.

Trading profits for February 5 were $10,000. In addition, on February 5, investors redeemed 1000 shares at the NAV.

a. What were NAVs for the fund for each day of the week beginning February 1?

b. What were daily returns for February 2 through February 5?

c. What was the time-weighted average return for this four-day period?