Suppose a hedge fund manager earns 1% per trading day. There are 250 trading days per year. Answer the following questions:

1.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?

(b) What will be your annual return assuming she puts all of your daily earnings into a zero-interest- bearing checking account and pays you everything earned at the end of the year?