From: Jeffrey Epstein <[email protected]>

From: Jeffrey Epstein <[email protected]> To: "Dr. Henry Jarecki" Subject: Re: FW: Annualization Chart Date: Wed, 14 Jul 2010 07:46:48 +0000 in fact , you might want compound the loss at the same compounding rate as the gain. if i am up 20% , your calculations assume the same 20% rate of return , for the next six months„ ( annualized at the current rate )..ie A return on the initial amount , PLUS a return on the increased gain. For losses. you should only use initial amount . as opposed to suggesting you can't lose more money on the amount already lost . Unless you are comfortable with the fact that since stocks can;t trade below zero. If the line of the chart, clearly points to zero.. I at least always want to know how long till broke. with losses annualized, it never gets there until its too late. On Tue, Jul 13, 2010 at 10:51 PM, Jeffrey Epstein leevacation®gmail.com> wrote: no no no „ annualize the the return on chart one.show it for each month, from month six to 12.. ,. the question i raised was that the annualized returns are extremely misleading. . when it comes to losses.. if the stock went from 100 to zero in a linear fashion. , Though one would lose 100"% of their money if the decline of 1 pt a day continued until the end of the year, with full knowledge ., the annualized return 6 months out -75 %would lead you to believe that you would still have 25 dollars left . On The, Jul 13, 2010 at 10:11 PM, Dr. Henry Jarecki wrote: From: Alessandro Motto Sent: Tuesday, July 13, 10 17:07 To: Dr. Henry Jarecki Subject: Annualization Chart Please disregard the previous version. I have corrected a typo. Regards, Alessandro The information contained in this message, and any attachment, is intended only for the intended recipient(s). It may contain confidential, privileged or proprietary information. If you are not the intended recipient, you are not authorized to review, copy or distribute this message. If you receive this message in error, please notify the sender by reply email and delete this message. Thank you. The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of EFTA00736690 Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] and destroy this communication and all copies thereof, including all attachments. The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected], and destroy this communication and all copies thereof, including all attachments. EFTA00736691