If it is all correct i will give a thumbs up.

choice for first one is smaller or larger

Compared to mutual funds, hedge funds usually require much initial investments. Suppose that Thompson Hedge Fund obtains and invests $2 of borrowed funds for every $1 of equity irvested, In other words, it can invest $3 of assets for each $1 of equity. Also suppose that Thompson can achieve a 20% return on assets (ROA). Given this ROA, the return on Thompson's equity investment is Suppose that Thompson Hedge Fund obtains and invests $2 of borrowed funds for every $1 of equity invested. In other words, it can invest $3 of assets for each $1 of equity. However, suppose that Thompson suffers a 20% loss, or a 20% retum on assets (ROA). Given this ROA, the retum on Thompson's equity investment is