Interview Question: Too Good to Be True

Sample Question #308 (finance)
 
A heretofore obscure hedge fund manager claims that, since 1990, his opportunistic strategy, coupled with "reasonable" leverage and "superb" risk management, has averaged 66% in annualized gross return. Why is this claim not believable?
 
[Answer in the comment section]
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One Response to Interview Question: Too Good to Be True

  1. Brett says:

    $10,000 * (1+66%)^18 = $91,610,570!!!

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