Question
Investing: Inverse Mutual Funds Inverse mutual funds, sometimes referred to as bear market or short funds, seek to deliver the opposite of the performance of
Investing: Inverse Mutual Funds Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the opposite of the performance of the index or category they track, and can thus be used by traders to bet against the stock market. This question is based on the following table, which shows the performance of three such funds as of February 27, 2015.
| Year-to-date Loss | |
|---|---|
| SHPIX (Short Smallcap Profund) | 4% |
| RYURX (Rydex Inverse S&P 500) | 3% |
| RYCWX (Rydex Inverse Dow) | 6% |
You invested a total of $9,000 in the three funds at the beginning of 2015, including an equal amount in RYURX and RYCWX. Your year-to-date loss from the first two funds amounted to $260. How much did you invest in each of the three funds?
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Cornerstones of Financial and Managerial Accounting
Authors: Rich Jones, Mowen, Hansen, Heitger
1st Edition
978-0324787351
