Monday, December 30, 2013

A Little MFM Math Problem

    This is taken from just last week:

    Ariel Fund is up 41.42% for the year coming into the trading day.

For the day, Ariel increases by 1.06%.

Now how much is Ariel Fund up for the year?

    The Moron's knee-jerk answer was, of course, 42.48%.

    The Moron's knee-jerk answer was, of course, wrong.

The right answer, for reasons that become obvious upon just a small amount of reflection:

42.92%

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