Investing: Inverse Mutual Funds   Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the opposite of the performance of the index or category they track, and can thus be used by traders to bet against the stock market. This question is based on the following table, which shows the performance of three such funds as of February 27, 2015.†
Year-to-date Loss
SHPIX (Short Smallcap Profund)	4%
RYURX (Rydex Inverse S&P 500)	3%
RYCWX (Rydex Inverse Dow)	6%
You invested a total of $11,000 in the three funds at the beginning of 2015, including an equal amount in RYURX and RYCWX. Your year-to-date loss from the first two funds amounted to $290. How much did you invest in each of the three funds?
SHPIX	$  
RYURX	$  
RYCWX	$  


Let's solve this problem step by step.

### Step 1: Define the variables.
Let:
- $ x $ be the amount invested in **SHPIX**.
- Since the amount invested in **RYURX** and **RYCWX** is equal, let the amount invested in each be $ y $.

### Step 2: Set up the relationships.
We know the total investment is $11,000, so we can express this as:
\[
x + y + y = 11,000
\]
or
\[
x + 2y = 11,000 \quad \text{(Equation 1)}
\]

### Step 3: Use the loss information.
You are given that the year-to-date losses from **RYURX** and **RYCWX** together amount to $290. The losses for these funds are given as 3% and 6%, respectively, which means:
\[
0.03y + 0.06y = 290
\]
This simplifies to:
\[
0.09y = 290
\]
Solving for $ y $:
\[
y = \frac{290}{0.09} = 3,222.22
\]

### Step 4: Calculate $ x $.
Now that we know $ y = 3,222.22 $, substitute this into Equation 1:
\[
x + 2(3,222.22) = 11,000
\]
\[
x + 6,444.44 = 11,000
\]
\[
x = 11,000 - 6,444.44 = 4,555.56
\]

### Step 5: Conclusion
Thus, the amounts invested in each fund are:
- SHPIX: $ x = 4,555.56 $
- RYURX: $ y = 3,222.22 $
- RYCWX: $ y = 3,222.22 $

### Final Answer:
- SHPIX: $4,555.56
- RYURX: $3,222.22
- RYCWX: $3,222.22

Would you like further details on this? Here are 5 related questions to explore further:

1. How do inverse mutual funds function in a bull market?
2. What are the risks associated with investing in inverse mutual funds?
3. How do inverse ETFs compare with inverse mutual funds?
4. Can inverse mutual funds be used for long-term investment strategies?
5. What happens if the index tracked by an inverse mutual fund rises continuously?

**Tip:** Always remember that inverse mutual funds are generally short-term investment tools, and holding them for extended periods can lead to losses due to compounding effects.

Investing: Inverse Mutual Funds   Inverse mutual funds, sometimes referred to as 'bear market' or 'short' funds, seek to deliver the opposite of the performance of the index or category they track, and can thus be used by traders to bet against the stock market. This question is based on the following table, which shows the performance of three such funds as of February 27, 2015.†
Year-to-date Loss
SHPIX (Short Smallcap Profund)	4%
RYURX (Rydex Inverse S&P 500)	3%
RYCWX (Rydex Inverse Dow)	6%
You invested a total of $11,000 in the three funds at the beginning of 2015, including an equal amount in RYURX and RYCWX. Your year-to-date loss from the first two funds amounted to $290. How much did you invest in each of the three funds?
SHPIX	$  
RYURX	$  
RYCWX	$

Learn how to calculate individual investments in inverse mutual funds using algebra. This problem explores how to use linear equations and percentages to solve for investments in SHPIX, RYURX, and RYCWX based on given losses and total investment. Suitable for high school students in Grades 9-12.

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