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Strategies & Market Trends : Ultra OTC Fund - UOPIX -- Ignore unavailable to you. Want to Upgrade?

To: Bernie Goldberg who wrote (947)	12/5/2000 10:55:12 PM
From: Todd Reichardt	Respond to of 2063

Hi Bernie, C is the best answer, see post 941 for my calcs. You're right that the loss on the second day is a smaller percentage of the underlying than the percentage gain on the first day. But, the daily compounding of UOPIX means the losing percentage on the second day applies not only to the starting balance, but also to the gains of the first day, hence the losses in the account on the second day more than take away the profits from the first day. Its not exactly intuitive. Todd