NASAA Series 65 — All Questions

For a bond with positive convexity, an equal-sized change in yield produces which price effect?

• a.The loss from a yield rise exceeds the gain from a yield decline
• b.The gain and loss are equal because price moves linearly
• c.The price falls in both cases because convexity adds risk
• d.The gain from a yield decline exceeds the loss from a yield rise✓

Positive convexity means the price-yield curve is convex, so price rises more when yields fall than it drops when yields rise by the same amount. A larger loss describes negative convexity, as in callable bonds near the call price. Equal gains and losses would make the relationship linear, which duration alone assumes. Price cannot fall in both directions, because yield and price still move inversely.Bond convexity

A 6% coupon bond is trading at a discount to par. Which ranking of its yields is correct?

• a.Yield to maturity, current yield and coupon rate are all equal
• b.Current yield exceeds yield to maturity, which exceeds the coupon rate
• c.Coupon rate exceeds current yield, which exceeds yield to maturity
• d.Yield to maturity exceeds current yield, which exceeds the coupon rate✓

At a discount, current yield (annual interest divided by the lower price) is above the coupon rate, and yield to maturity is higher still because it adds the gain as the price pulls up to par. The reverse ordering describes a premium bond. Putting current yield above yield to maturity ignores the pull-to-par gain. Equal yields occur only when the bond trades at par.Bond yields

A bond with a 6% coupon and $1,000 par value is bought for $1,200. What is its current yield?

• a.6.0%
• b.20.0%
• c.5%✓
• d.7.2%

Current yield is annual interest divided by market price: $60 / $1,200 = 5%. A 6.0% figure is just the coupon rate on par. A 7.2% figure multiplies the coupon by the price ratio instead of dividing. A 20.0% figure is the premium over par, not a yield.Bond yields

An investor in the 28% federal bracket holds a municipal bond yielding 3.6%. What taxable bond yield would give the same after-tax return?

• a.2.6%
• b.5%✓
• c.4.6%
• d.3.6%

Taxable-equivalent yield equals the tax-free yield divided by (1 - tax rate): 3.6% / 0.72 = 5%. A 3.6% figure ignores the tax on a taxable bond. A 4.6% figure adds 28% of 3.6% instead of dividing. A 2.6% figure multiplies by (1 - tax rate), which is how to find an after-tax yield and not a taxable-equivalent one.Taxable-equivalent yield

The risk-free rate is 3%, the market is expected to return 10%, and a stock's beta is 1.2. Under CAPM, the stock's required return is

• a.8.4%
• b.11.4%✓
• c.10%
• d.12%

CAPM required return = risk-free rate + beta x (market return - risk-free rate) = 3% + 1.2 x 7% = 11.4%. An 8.4% figure applies beta to the market premium without adding the risk-free rate. A 10% figure is the market return, which applies only at a beta of 1.0. A 12% figure multiplies the market return by beta.CAPM

A portfolio has an expected return of 8% and a standard deviation of 10%. Assuming a normal distribution, a return between -2% and 18% in a given year has a probability of about

• a.99.7%
• b.68%✓
• c.50%
• d.95%

The range -2% to 18% is the mean plus or minus one standard deviation, which covers about 68% of outcomes. Fifty percent is not tied to a standard deviation band. Roughly 95% requires two standard deviations (-12% to 28%). Roughly 99.7% requires three (-22% to 38%).Standard deviation

A portfolio returned 11% with a standard deviation of 16% while Treasury bills yielded 3%. What is its Sharpe ratio?

• a.0.19
• b.0.69
• c.0.5✓
• d.1.45

Sharpe ratio is excess return per unit of total risk: (11% - 3%) / 16% = 0.5. A 0.69 result divides the raw return by the standard deviation without subtracting the risk-free rate. A 0.19 result divides the risk-free rate by the standard deviation. A 1.45 result divides the standard deviation into the return in the wrong direction.Sharpe ratio

Unlike the Sharpe ratio, the Treynor ratio measures excess return relative to which risk measure?

• a.Tracking error, the spread against a benchmark's returns
• b.Beta, the portfolio's sensitivity to market movements✓
• c.Standard deviation, the total variability of returns
• d.Duration, the portfolio's sensitivity to interest rates

Treynor divides excess return by beta, so it rewards compensation for systematic risk and suits a portfolio that is one piece of a larger diversified holding. Standard deviation is the Sharpe ratio's denominator. Tracking error is used in the information ratio. Duration measures bond price sensitivity and is not a performance-ratio denominator.Treynor ratio

Given its beta, a fund's CAPM-expected return is 10%, but the fund actually returned 12%. What is the fund's alpha?

• a.+10%
• b.+2%✓
• c.-2%
• d.+12%

Alpha is actual return minus the CAPM-expected return: 12% - 10% = +2%, meaning the manager added value beyond the risk taken. Reversing the subtraction gives -2%, which would indicate underperformance. Ten percent is the expected return, not the excess. Twelve percent is the actual return, not the excess.Alpha

If $10,000 is invested at 6% compounded annually, what is the value after two years?

• a.$11,236✓
• b.$11,200
• c.$11,000
• d.$12,000

Future value = $10,000 x 1.06 x 1.06 = $11,236. The $11,200 answer uses simple interest, which ignores interest earned on the first year's interest. The $11,000 answer counts only one year of interest. The $12,000 answer applies 10% per year, which is not the stated rate.Time value of money

Using the rule of 72, about how many years will it take an investment earning 8% annually to double?

• a.6 years
• b.18 years
• c.12 years
• d.9 years✓

The rule of 72 divides 72 by the annual rate: 72 / 8 = 9 years. Six years would correspond to a 12% rate. Twelve years would correspond to a 6% rate. Eighteen years would correspond to a 4% rate.Rule of 72

A CD pays 4.5% and the investor is in the 22% bracket. With 3% inflation, the real after-tax return is approximately

• a.1.5%
• b.0.51%✓
• c.4.5%
• d.3.51%

After-tax yield is 4.5% x (1 - 0.22) = 3.51%; subtracting 3% inflation leaves about 0.51%. A 1.5% figure ignores taxes and takes inflation from the pretax rate. A 3.51% figure is the after-tax return before inflation. A 4.5% figure ignores both taxes and inflation.Real return

To tighten monetary policy, the Federal Reserve would most likely

• a.lower the interest rate paid on reserve balances
• b.sell Treasury securities in open market operations✓
• c.buy Treasury securities in open market operations
• d.lower the discount rate charged on Fed loans

Selling securities drains reserves from banks, which pushes the federal funds rate up and slows lending. Buying securities adds reserves and eases policy. Lowering the rate paid on reserve balances reduces banks' incentive to hold reserves and eases policy. A lower discount rate makes borrowing from the Fed cheaper, which also eases policy.Monetary policy

Which action is an example of expansionary fiscal policy?

• a.The Fed cuts the discount rate to member banks
• b.The Fed buys Treasury notes through open market operations
• c.The Treasury raises interest rates on new Series I bonds
• d.Congress enacts a temporary payroll tax reduction✓

Fiscal policy is set by Congress and the President through taxes and spending, so a payroll tax cut that raises disposable income is expansionary fiscal policy. Open market purchases and a lower discount rate are monetary policy tools controlled by the Fed. Changing the rate on savings bonds is a Treasury pricing decision, not a broad stimulus tool.Fiscal policy

A surge in crude oil prices raises production costs across many industries and pushes the general price level up while output falls. This is best described as

• a.a liquidity trap
• b.cost-push inflation✓
• c.demand-pull inflation
• d.deflationary contraction

Cost-push inflation results from higher input costs that shift aggregate supply inward, raising prices while output declines. Demand-pull inflation comes from spending outrunning supply and normally comes with rising output. Deflation means falling prices, which is the opposite of what happened here. A liquidity trap describes ineffective monetary policy at very low rates, not a cost shock.Inflation

Which combination of conditions defines stagflation?

• a.Rising prices with low unemployment and strong growth
• b.Stable prices with low unemployment and moderate growth
• c.Falling prices with high unemployment and weak growth
• d.Rising prices with high unemployment and weak growth✓

Stagflation pairs persistent inflation with stagnant output and high unemployment, as in the 1970s oil shocks. Falling prices with weak growth describes deflation or a depression. Rising prices with strong growth and low unemployment describes an overheating expansion. Stable prices with low unemployment describes a healthy economy.Stagflation

Which of the following is a lagging economic indicator?

• a.The S&P 500 stock price index
• b.Building permits for new private housing
• c.Average weekly initial claims for unemployment insurance
• d.The average prime rate charged by banks✓

The prime rate follows changes in the economy and in the federal funds rate, so it is a lagging indicator. Building permits are a leading indicator because construction follows approval. Stock prices lead the economy as markets look ahead. Initial jobless claims are a leading indicator of labor market weakness.Economic indicators

Which transaction is counted in this year's gross domestic product?

• a.The government pays monthly Social Security benefits
• b.A family sells a house built in 2015
• c.An investor buys shares on the secondary market
• d.A builder completes a new house this year✓

GDP counts the market value of final goods and services produced in the year, so a newly built house is included. Resale of an existing house is a transfer of an asset produced earlier. Social Security benefits are transfer payments, not payment for current production. Secondary market share purchases move ownership of financial assets and add no output.GDP

A stock is expected to pay a $2.00 dividend next year, with dividends growing 4% per year indefinitely. At a 9% required return, the constant-growth model values the stock at

• a.$22.22
• b.$50.00
• c.$40✓
• d.$30.77

The constant-growth model gives value = next dividend / (required return - growth) = $2.00 / 0.05 = $40. A $22.22 figure divides by the full 9% required return and ignores growth. A $30.77 figure divides by 6.5%, which is not a rate in the problem. A $50.00 figure divides by 4%, the growth rate alone.Dividend discount model

A company reports earnings of $5.00 per share and pays dividends of $2.00 per share. What is its dividend payout ratio?

• a.25%
• b.250%
• c.40%✓
• d.60%

Payout ratio is dividends divided by earnings: $2.00 / $5.00 = 40%. A 25% figure is not derived from the numbers given. A 60% figure is the retention ratio, the share of earnings kept. A 250% figure inverts the division.Financial ratios

A firm has current assets of $400,000, inventory of $150,000, and current liabilities of $200,000. What is its quick ratio?

• a.2.75
• b.0.75
• c.1.25✓
• d.2.00

The quick ratio removes inventory from current assets: ($400,000 - $150,000) / $200,000 = 1.25. A 0.75 result divides inventory by current liabilities. A 2.00 result is the current ratio, which leaves inventory in. A 2.75 result adds the inventory instead of subtracting it.Financial ratios

Evidence that corporate insiders consistently earn abnormal profits on their own company's stock is most inconsistent with which form of market efficiency?

• a.All three forms equally
• b.Strong form✓
• c.Weak form
• d.Semi-strong form

The strong form says prices reflect all information, public and private, so consistent insider profits would contradict it. The weak form holds that prices reflect past trading data, and insider gains do not conflict with it. The semi-strong form says prices reflect all public information, which is consistent with insiders profiting from nonpublic facts. The three forms are nested, so the insider evidence does not contradict them equally.Efficient market hypothesis

Which risk is most reduced by holding stocks of 30 companies across many industries?

• a.Purchasing power risk from rising consumer prices
• b.Business risk specific to any one company✓
• c.Market risk from a broad economic downturn
• d.Interest rate risk from changes in market yields

Company-specific (unsystematic) risk, such as a failed product or a lawsuit, can be diversified away. Market risk, interest rate risk and purchasing power risk are systematic, so they affect nearly all securities and cannot be removed by adding more holdings.Systematic and unsystematic risk

An investment of $10,000 gains 50% in year one and loses 50% in year two. What is its value at the end of year two?

• a.$5,000
• b.$7,500✓
• c.$12,500
• d.$10,000

After a 50% gain the value is $15,000, and a 50% loss on that larger base leaves $7,500. A $5,000 result subtracts 50% from the original amount only. A $10,000 result treats the two returns as offsetting arithmetic averages. A $12,500 result adds a 25% gain with no basis in the returns. Equal percentage gains and losses do not cancel because the base changes.Portfolio returns

Which return measure is best for evaluating a manager who has no control over clients' deposits and withdrawals?

• a.Current yield
• b.Holding period return
• c.Money-weighted return
• d.Time-weighted return✓

Time-weighted return removes the effect of cash flows in and out, so it isolates the manager's decisions. Money-weighted return (internal rate of return) is affected by the timing and size of deposits and withdrawals, which the manager does not control. Holding period return covers one period without adjusting for flows. Current yield measures income only.Performance measurement

A mutual fund may describe itself as a no-load fund only if its annual 12b-1 fee does not exceed

• a.0.75% of average net assets
• b.0.50% of average net assets
• c.1.00% of average net assets
• d.0.25% of average net assets✓

Under FINRA Rule 2341, a fund calling itself no-load can charge a 12b-1 fee of no more than 0.25% of average net assets, and it cannot carry a front-end or deferred sales charge. A 0.50% fee is not a Rule 2341 threshold. The 0.75% figure is the cap on the asset-based sales charge portion for funds that do charge loads. A 1.00% figure is the combined cap of sales charge and service fee.FINRA Rule 2341

Under the typical terms in a load fund's prospectus, an investor signs a letter of intent to reach a sales-charge breakpoint. How long does the investor have to complete the purchases?

• a.2 years
• b.6 months
• c.1 year
• d.13 months✓

Fund prospectuses typically give the investor 13 months from the start of the letter of intent to complete the purchases needed for the breakpoint. Whether earlier purchases may be counted toward the commitment differs from fund to fund and is set out in each prospectus. Six months and one year are shorter than the period funds allow, and two years is longer.Fund prospectus letter-of-intent terms (13-month period)

A fund's net asset value is calculated at 4:00 p.m. Eastern. An investor's purchase order reaches the fund's agent at 4:20 p.m. At which price will it be filled?

• a.The NAV calculated at the next close✓
• b.The opening price on the next trading day
• c.The NAV calculated at the 4:00 p.m. close
• d.The NAV at the time the order is entered

Mutual funds use forward pricing under Rule 22c-1: orders received after the pricing time get the next computed NAV. The 4:00 p.m. NAV is already set and cannot be given to a later order. A price set when the order is entered would be intraday pricing, which funds do not use. Funds do not price at an opening price, since NAV is based on closing values.Rule 22c-1

A mutual fund has total assets of $510 million, liabilities of $10 million, and 25 million shares outstanding. What is its net asset value per share?

• a.$19.60
• b.$21.00
• c.$20✓
• d.$20.40

NAV per share = (assets - liabilities) / shares = $500 million / 25 million = $20. A $20.40 figure divides assets without subtracting the liabilities. A $19.60 figure subtracts the liabilities twice. A $21.00 figure comes from adding the liabilities to the assets.Net asset value

A closed-end fund has a net asset value of $20 per share and trades at $18 on the exchange. The fund is trading at

• a.a 10% premium to NAV
• b.a 2% discount to NAV
• c.a 10% discount to NAV✓
• d.an 11% discount to NAV

The discount is (NAV - price) / NAV = $2 / $20 = 10%. A premium would mean the price is above NAV. An 11% figure divides the gap by the market price instead of NAV. A 2% figure treats the $2 gap as a percentage.Closed-end funds

After a variable annuity is annuitized, whether each payment is higher or lower than the prior one depends on how the separate account performs compared with

• a.the insurer's declared fixed-account rate
• b.the S&P 500 total return index
• c.the assumed interest rate (AIR)✓
• d.the contract's surrender charge schedule

Annuity unit values rise when separate account performance exceeds the assumed interest rate and fall when it is below it, so payments move with that comparison. A stock index is not the benchmark. The declared fixed-account rate applies to the general account, not to the separate account. Surrender charges apply to early withdrawals during accumulation and have nothing to do with payout amounts.Variable annuities

A 45-year-old takes a partial withdrawal from a non-qualified annuity. How is it taxed?

• a.Earnings and basis are taxed pro rata at capital gains rates
• b.Earnings come out first as ordinary income, plus a 10% penalty✓
• c.Cost basis comes out first and is not taxed or penalized
• d.Earnings come out first as long-term gain, with no penalty

For non-qualified annuity contracts, withdrawals are treated as earnings first (last in, first out), taxed as ordinary income, and the taxable amount incurs a 10% additional tax before age 59 1/2. Basis-first treatment applies to the annuitized payout through the exclusion ratio, not to partial withdrawals. Pro rata treatment does not apply to the contract, and annuity earnings are never taxed as capital gains.Annuity taxation

Which exchange can generally be made tax-free under Internal Revenue Code Section 1035?

• a.An annuity contract for shares of a mutual fund
• b.A life insurance policy for an annuity contract✓
• c.An annuity contract for a life insurance policy
• d.Shares of common stock for an annuity contract

Section 1035 allows a life policy to be exchanged for a life policy, an endowment, or an annuity, and an annuity for an annuity. The exchange cannot run from an annuity to a life policy. Exchanges into or out of mutual fund shares and stock are ordinary taxable sales.IRC Section 1035

To avoid paying corporate income tax, a REIT must distribute at least what percentage of its taxable income to shareholders?

• a.100%
• b.50%
• c.75%
• d.90%✓

A REIT qualifies for pass-through treatment by distributing at least 90% of its taxable income. Fifty percent is below the requirement. The 75% figure is the share of assets and income that must come from real estate. Distribution of 100% is not required, though it avoids tax on retained income.Real estate investment trusts

A private fund relying on the Section 3(c)(1) exclusion of the Investment Company Act may have no more than how many beneficial owners?

• a.100✓
• b.35
• c.2,000
• d.250

Section 3(c)(1) excludes a fund with 100 or fewer beneficial owners that does not offer securities publicly. The 35 figure is the cap on non-accredited purchasers in a Rule 506(b) offering. The 2,000 figure is the holder-of-record threshold for Exchange Act registration. Two hundred fifty is not a standard in either rule.Private funds

In a Rule 506(b) private offering, how many non-accredited purchasers are permitted?

• a.No more than 100
• b.No more than 10
• c.None, because every buyer must be accredited
• d.No more than 35✓

Rule 506(b) permits up to 35 non-accredited purchasers if they are sophisticated and receive the required disclosure, but general solicitation is prohibited. Requiring every purchaser to be accredited describes Rule 506(c). The numbers 10 and 100 do not apply to Rule 506(b).Regulation D

Under Regulation D, which income test qualifies an individual as an accredited investor?

• a.$200,000 in each of the last two years ($300,000 jointly)✓
• b.$250,000 in the last year ($400,000 jointly)
• c.$150,000 in the current year ($250,000 jointly)
• d.$100,000 in each of the last two years ($150,000 jointly)

An individual qualifies with income above $200,000 in each of the two most recent years, or $300,000 with a spouse, and a reasonable expectation of the same in the current year. The other thresholds are not Regulation D standards. The net worth test is separate, at over $1 million excluding the primary residence.Accredited investors

An investor holds restricted stock of a company that files periodic reports with the SEC. What is the minimum holding period before the shares may be resold under Rule 144?

• a.9 months
• b.3 months
• c.6 months✓
• d.2 years

Restricted securities of a reporting company have a six-month holding period under Rule 144, while securities of a non-reporting issuer require a year. Three months is too short for non-affiliates. Nine months and two years are not Rule 144 periods.Rule 144

An investor sells stock at a loss on March 10 and buys the same stock on April 2. How is the loss treated for tax purposes?

• a.It is deductible but limited to $3,000 against ordinary income
• b.It is deductible in full because the purchase came after the 30-day window
• c.It is disallowed now and added to the cost basis of the new shares✓
• d.It is permanently disallowed with no effect on the new shares

A repurchase of substantially identical stock within 30 days before or after a sale at a loss triggers the wash sale rule. April 2 is 23 days after the sale, so the loss is disallowed currently but added to the basis of the replacement shares, preserving it for later. The 30 days fall inside the window. The $3,000 limit is the net capital loss deduction, which is a separate rule. The disallowed loss is deferred, not lost.Wash sale rule

Interest on which municipal bond may be a tax preference item for the federal alternative minimum tax?

• a.A pre-refunded bond secured by escrowed Treasuries
• b.A revenue bond financing a public water system
• c.A general obligation bond financing a school
• d.A private activity bond✓

Interest on private activity bonds can be an AMT preference item. General obligation bonds for schools and revenue bonds for essential public facilities are governmental-purpose bonds, whose interest is not an AMT preference. A pre-refunded bond keeps the tax status of the original issue, which is governmental here.Municipal bonds

A taxable investor holds Treasury Inflation-Protected Securities. How is the annual increase in principal from inflation adjustments taxed?

• a.Deferred until the bond matures or is sold, then taxed as income
• b.Taxed as a long-term capital gain when the bond matures
• c.As ordinary income in the year it accrues, though unpaid✓
• d.Exempt from federal tax, like the interest on municipal bonds

The inflation adjustment to TIPS principal is taxable federal income each year it accrues, creating phantom income because the cash arrives only at maturity or sale. Deferral to maturity is not allowed. TIPS interest and adjustments are exempt from state and local tax, not federal. The adjustment is ordinary income, not capital gain.TIPS

Which Treasury security is sold at a discount from face value and pays no periodic interest?

• a.Treasury note
• b.Treasury inflation-protected security
• c.Treasury bill✓
• d.Treasury bond

Treasury bills mature in one year or less, are sold at a discount, and pay face value at maturity. Notes and bonds pay interest every six months. TIPS also pay semiannual interest on the inflation-adjusted principal.Treasury securities

The duration of a zero-coupon bond is equal to its

• a.current yield times its time to maturity
• b.time to maturity divided by two
• c.time to maturity✓
• d.coupon rate times its time to maturity

With no interest payments, all cash flow arrives at maturity, so duration equals the time remaining. Half the time to maturity would be a rough guide for a bond with level payments, not a zero. A zero has no coupon rate to multiply. Current yield is zero for a zero-coupon bond, so the product would be meaningless.Zero-coupon bonds

A callable bond trades at a premium to par. Which of its yields is likely to be the lowest?

• a.Yield to call✓
• b.Yield to maturity
• c.Current yield
• d.Nominal yield

A premium bond called early returns par sooner, so the premium is amortized over a shorter period and yield to call is below yield to maturity. For a premium bond, yield to maturity is below current yield, and current yield is below the nominal (coupon) yield, so those cannot be the lowest.Callable bonds

A $1,000 par convertible bond has a conversion price of $40. The common stock is trading at $44. What is the bond's conversion value?

• a.$1,000
• b.$1,760
• c.$1,100✓
• d.$910

The bond converts into $1,000 / $40 = 25 shares, worth 25 x $44 = $1,100. A $1,000 figure is par. A $1,760 figure multiplies the stock price by the conversion price. A $910 figure divides the conversion price by the stock price.Convertible securities

An investor buys one XYZ 100 put for 3. What is the breakeven stock price at expiration?

• a.$94
• b.$103
• c.$97✓
• d.$100

A long put breaks even at strike price minus premium: $100 - $3 = $97. A $94 figure subtracts the premium twice. A $100 figure ignores the premium. A $103 figure is the breakeven for a long call.Options

An investor buys 100 shares of XYZ at $40 and sells one 45 call for 2. What is the maximum gain on the position, ignoring commissions?

• a.$200
• b.$500
• c.$700✓
• d.$900

The maximum gain is the stock's rise to the strike ($5) plus the premium received ($2), or $7 per share, which is $700. A $200 figure counts only the premium. A $500 figure counts only the stock appreciation. A $900 figure double-counts the premium.Options

An investor owns 100 shares of XYZ bought at $60 and buys one 55 put for 2. What is the maximum possible loss, ignoring commissions?

• a.$200
• b.$700✓
• c.$500
• d.$6,000

The loss is limited to the $5 fall to the strike plus the $2 premium, which is $7 per share, or $700. A $200 figure counts only the premium. A $500 figure counts only the decline to the strike. A $6,000 figure would apply if the stock went to zero without the put.Options

A futures-based commodity fund rolls its contracts while the market is in contango. Compared with the change in the spot price, the fund's return is likely to be

• a.higher, because each roll buys a lower-priced contract
• b.lower, because each roll buys a higher-priced contract✓
• c.higher, because each roll earns the dividend yield
• d.the same, because futures converge to the spot price

In contango, later-dated futures cost more than the expiring contract, so each roll sells low and buys high, which drags returns below the spot change. Backwardation produces the opposite effect, a positive roll yield. Convergence to spot occurs at expiration but does not offset the roll cost. Commodity futures pay no dividends.Commodity funds

An index rises 5% on day one and falls 5% on day two. A fund seeking twice the daily return of the index would have what return over the two days?

• a.-1.0%✓
• b.-0.25%
• c.0.0%
• d.-0.5%

The fund goes up 10% then down 10%: 1.10 x 0.90 = 0.99, which is -1.0%. The index itself returned -0.25%, and doubling it to -0.5% ignores daily compounding. A 0.0% result assumes the gains and losses cancel. Daily resetting makes leveraged funds drift away from a multiple of the multi-day return.Leveraged ETFs