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 she allows you to reinvest in her fund the 1% you earn each day?

Annual Interest will be $1,103.21

Explanation:

Reinvesting on 1% per working will enable a fund manager to compound the earning to 250 trading days per year.

Use following formula to calculate the the amount investment after compounding 250 days.

F = P ( 1 + r/n )^n

n is the number of period in a year. and r/n is the interest per day which 1%.

F = 100 ( 1 + 0.01 )^250

F = $1,203.22

Return = $1,203.22 - $100 = $1,103.21

Another way:

Effective Annual rate = ( 1 + 0.01)^250 - 1

Effective Annual rate = ( 1.01)^250 - 1

Effective Annual rate = 11.0321 = 1,103.21%

F = 100 x 1103.21% = $1103.21

Suppose money invested in a hedge fund earns 1% per trading day. There are 250 trading days per year. What will be your annual return on $100 invested in the fund if the manager allows you to reinvest in the fund the 1% you earn each day?

1203.22

Explanation:

1203.22

Interpersonal process

Explanation:

Motivating and confidence building, conflict management, and affect management are types of Interpersonal processes.

Interpersonal processes shows an individual's interpersonal behavior and how one builds personal relationships such as romance and friendships, etc.