Suppose a hedge fund manager earns 1% per trading day. There are 250 trading days per year. Answer the following questions:

a. What will be your annual return on $100 invested in her fund if they allow you to reinvest in their fund the 1% you earn each day?

b. What will be your annual return assuming they put all of your daily earnings into a zero-interest- bearing checking account and pays you everything earned at the end of the year?

c. Can you summarize when it is proper to "annualize" using APR (annual percentage rate) versus EAR (effective annual rate)? Preferably if showed work or explanation alongside the answer/work.

Preferably if showed work or explanation alongside the answer/work.