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Jason Goff is a trader at Silico Partners, a hedge fund based in London. He buys 10,000 shares a stock at $100 each.He finances the
Jason Goff is a trader at Silico Partners, a hedge fund based in London. He buys 10,000 shares a stock at $100 each.He finances the purchase with 20% of the fund's equity and the rest with short term loan at 3% per annum interest rate. After one month, he resells the shares at $110 and repays his loan. Assume a 360-day year (12 months of 30 days each)
1) What is the net profit (loss) in dollars?
2) What is Goff's annualized Return on Assets on this deal?
3) What is Goff's annualized Return on Equity on this deal
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