What are the total fees you pay over the course of the three years? Enter a number with two decimal

Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter2: Descriptive Statistics
Section: Chapter Questions
Problem 17P: Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual...
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You invest $100,000 in a hedge fund with a 2/20
fee structure. For the next 3 years, the hedge fund
earns annual returns of 27.08%, -14.07%, and
72.79%. You make no withdrawals from the fund.
Whenever fees are due, you write a check for that
amount to the fund (such that the fund doesn't
deduct the fees from your portfolio value). The
fund's fee structure has a high watermark feature.
What are the total fees you pay over the course of
the three years? Enter a number with two decimal
points. Answer the question in dollar amount, i.e.,
if the answer is $20, enter 20.00.
Transcribed Image Text:You invest $100,000 in a hedge fund with a 2/20 fee structure. For the next 3 years, the hedge fund earns annual returns of 27.08%, -14.07%, and 72.79%. You make no withdrawals from the fund. Whenever fees are due, you write a check for that amount to the fund (such that the fund doesn't deduct the fees from your portfolio value). The fund's fee structure has a high watermark feature. What are the total fees you pay over the course of the three years? Enter a number with two decimal points. Answer the question in dollar amount, i.e., if the answer is $20, enter 20.00.
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