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Assume a leveraged ETF which promises to pay 3X the benchmark, and where the benchmark return is -20% at the end of the day. If
Assume a leveraged ETF which promises to pay 3X the benchmark, and where the benchmark return is -20% at the end of the day. If the initial NAV is 100, how much does the ETF need to rebalance assuming no entry/exit of flows to the fund?
Select one:
a. -200
b. -120
c. -60
d. -20
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