In the other scenario, when the overall market moves down instead of up, then the math looks this way for Benny:
Fund A made no progress and reports a zero gain. Fund B reports a 10% loss. Of course, the market went down an average of 5% or so, and everything averages out. For example, just like June and August of 2010.
And in July and Sept., when the market is driven up, then our previous scenario applies.
It's weird how these movements coincide with monthly and quarterly reporting dates! :)
Now who exactly gets to be in Fund A vs. Fund B??? Fascinating for next time...
