Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of retums over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.)
Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of retums over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee
of 20% of returns over a money market rate, which currently is 6%. Calculate total fees, both in dollars
and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions
rounded to 1 decimal place.) Required: A hedge fund with $0.7 billion of assets charges a management fee
of 3% and an incentive fee of 20% of retums over a money market rate, which currently is 6%. Calculate
total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your
answers in millions rounded to 1 decimal place.)
Required:
A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a
money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under
management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.)
Portfolio Total Fee
Rate of
Return (%) ($ million)
a.-1
b. 0
c. 6
d. 12
Total Fee
(%)
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