Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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In year 1, a fund increases from $179mm to $186mm (gross asset value). The fund has a 3/15
structure with a hurdle rate of 8%. How much are the performance fees for this year, assuming
they are charged after management fees are first deducted from the gross asset value?
4
$1.935mm
There are no performance fees for this year
$0.065mm
$0.1217mm
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Transcribed Image Text:In year 1, a fund increases from $179mm to $186mm (gross asset value). The fund has a 3/15 structure with a hurdle rate of 8%. How much are the performance fees for this year, assuming they are charged after management fees are first deducted from the gross asset value? 4 $1.935mm There are no performance fees for this year $0.065mm $0.1217mm
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