1. You invested $1,050,000 with a market-neutral hedge fund manager. The fee structure is 2/20. and the fund has a high-water-mark provision. Suppose the first year the fund manager loses 6 percent and the second year she gains 18 percent. Assume management fees are paid at the beginning of each year and performance fees are taken at the end of each year. What are the management and performance fees paid each year? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.) A. MANAGEMENT FEES YEAR 1 AND 2 B. PERFORMANCE FEES YEAR 1 AND 2 2 Suppose you're evaluating three alternative MMMF investments. The first fund buys a diversified portfolio of municipal securities from across the country and yields 3.3 percent. The second fund buys only taxable, short-term commercial paper and yields 5.4 percent. The third fund specializes in the municipal debt from the state of New Jersey and yields 3 percent. You are a New Jersey resident, your federal tax bracket is 35 percent, and your state tax bracket is 8 percent. (Assume your state taxes do not affect your federal taxable income.) A. Calculate the after-tax yield for each of the alternatives. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) -MUNICIPAL FUND -TAVABLE FUND -NEW JERSEY MUNICPLE FUND B.. Which of these three MMMFs offers you the highest after-tax yield? Taxable Fund New Jersey Fund Municipal Fund 3.Suppose you're evaluating three alternative MMMF investments. The first fund buys a diversified portfolio of municipal securities from across the country and yields 3.5 percent. The second fund buys only taxable, short-term commercial paper and yields 5.8 percent. The third fund specializes in the municipal debt from the state of New Jersey and yields 3.0 percent. Your federal income tax rate is 35 percent and you are a resident of Texas, which has no state income tax. a. Calculate the after-tax yield for each of the alternatives. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) -MUNICIPAL FUND -TAVABLE FUND - NEW JERSEY MUNICPLE FUND b. Which of these three MMMFs offers you the highest after-tax yield? Municipal Fund New Jersey Fund Taxable Fund 4. Suppose you purchase 11,500 shares of a closed-end mutual fund at its initial public offering the offer price is $10 per share. The offering prospectus discloses that the fund promoter gets a fee of 5 percent from the offering. If this fund sells at a discount of 8 percent to NAV the day after the initial public offering, what is the value of your investment
