Compared to mutual funds, hedge funds are usually subject to $q,$ regulation.

S$$ppose that Thompson Hedge Fund obtains and invests $$2$ of borrowed funds for every $$1$ of equity invested. In other words, it can invest $$3$ of assets for each $$1$ of equity. Also suppose that Thompson can achieve a $20\%$ return on assets $($ROA$).$

Given this ROA, the return on Thompson's equity investment is $\%.$

Suppose that Thompson Hedge Fund obtains and invests $$2$ of borrowed funds for every $$1$ of equity invested. In other words, it can invest $$3$ of assets for each $$1$ of equity. However, suppose that Thompson suffers a $20\%$ loss, or a $-20\%$ return on assets $($ROA$).$

Given this ROA, the return on Thompson's equity investment is $\%.$