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You buy a 2x S&P 500 ETF and hold it for three days. The S&P 500 Index returns for these three days are 5.80%,18.10%, and
You buy a 2x S\&P 500 ETF and hold it for three days. The S\&P 500 Index returns for these three days are 5.80%,18.10%, and 13.87%. What's the slippage of the three-day holding period return you experienced? That is, assuming the three-day holding period return of the S\&P 500 Index is x%, ideally, you should have a return of 2x%. But your three-day holding period return of the 2x S\&P 500 ETF is y%. What is (y2x)% ? Enter a number with two decimal points. Answer the question in percentage terms, i.e., if the answer is 20%, enter 20.00 . Question 5 0/3 pts You invest $100,000 in a hedge fund with a 2/20 fee structure. For the next 3 years, the hedge fund earns annual returns of 27.81%,10.53%, and 75.89%. You make no withdrawals from the fund. Whenever fees are due, you write a check for that amount to the fund (such that the fund doesn't deduct the fees from your portfolio value). The fund's fee structure has a high watermark feature. What are the total fees you pay over the course of the three years? Enter a number with two decimal points. Answer the question in dollar amount, i.e., if the answer is $20, enter 20.00
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