calculus word problem need help please

User Generated

znguobl1954

Mathematics

Question Description

Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the opposite of the performance of the index or category they track, and can thus be used by traders to bet against the stock market. This question is based on the following table, which shows the performance of three such funds as of August 12, 2011.

Year-to-date Loss
SHPIX (Short Smallcap Profund)6%
RYURX (Rydex Inverse S&P 500)5%
RYIHX (Rydex Inverse High Yield)7%

You invested a total of $10,000 in the three funds at the beginning of 2011, including an equal amount in RYURX and RYIHX. Your year-to-date loss from the first two funds amounted to $460. How much did you invest in each of the three funds? 

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Explanation & Answer

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total investment=10,000 dollars

RYURX and RYIHX  amounted  to 460 dollars


total percentage=(6+5+7)

=18

amount remaining=(10,000-460)

=9540

SHPIX=6/18 X 9540

=3180 DOLLARS

RYURX  =5/18 X 9540

=2650 DOLLARS

RYIHX=7/18 X 9540

=3710 DOLLARS



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WbryWbry (52)
New York University

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