FoundationNumeric answer
A leveraged ETF in a choppy market · Part 1 of 3
An index moves +10% one day and −10% the next. A 2× leveraged ETF delivers twice the index’s daily return, rebalancing each day.
What is the index’s total return over the two days, in per cent?
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
The worked solution is in Premium
The answer, the full working and the one idea to take away – for this and all 1,322 questions in the bank. Answer it in practice and your working is marked, with a known mistake named when you make one.
Learn the method
More markets and products questions
- An ETF trading rich, part 1 of 3Foundation
- An index rises 10% then falls 10%.Applied
- What keeps a liquid equity ETF trading close to the value of its basket?Applied
- An index fund charges 0.09% a year and earns 0.03% from securities lending.Applied
- An equity ETF trades at a 0.6% premium to the value of its underlying basket.Applied
- Why do equity ETFs usually distribute fewer capital gains to holders than…Applied