Question
LPMI, an exchange traded fund, provides investors with daily results equal to 250% of the performance of the Precious Metals Index. The daily returns of
LPMI, an exchange traded fund, provides investors with daily results equal to 250% of the performance of the Precious Metals Index.
The daily returns of the Precious Metals Index over the prior five days are 1%, -2%, 2%, -22%, and -10%. What is the total return of LPMI over the five days?
Another exchange traded fund, IPMI, provides investors with daily results equal to -100% of the performance of the Precious Metals Index. What is the total return of IPMI over these days?
Step by Step Solution
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Step: 1
To calculate the total return of LPMI and IPMI over the five days we need to consider the daily retu...
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Statistics For Business Decision Making And Analysis
Authors: Robert Stine, Dean Foster
2nd Edition
978-0321836519, 321836510, 978-0321890269
