a. Compute the rate of return after incentive fees to an imvestor in the fund of funds. (Do not round your intermediate calculations. Round your answer to 2 decimat places.) b. Suppose that instead of buying shares in each of the three hedge funds, a stand-alone (SA) hedge fund purchases the sameporffolio as the three underlying funds. The total value and composition of the SA fund is therefore identical to the one that would result from aggregating the three hedge funds. Consider an investor in the SA fund. After payfing 10% incentive fees, what would be the value of the investor's portfollo at the end of the year? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) b. Suppose that instead of buying shares in each of the three hedge funds, a stand-alone (SA) hedge fund purchases the same portfolio as the three underlying funds. The total value and composition of the SA fund is therefore identical to the one that would fesult from oggregating the three hedge funds. Consider an investor in the SA fund. After paying 10 s incentive foes, what would be the value of the investor's portfolio at the end of the year? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) 3. Answer is complete but not entirely correct. Peccentage refum d. Now suppose that the return on the portfolio held by hedge fund 3 were 35% rather than +35%. Rocalculate your answers to parts () and (o). (Do not round your intermediate calculations. Negative amount should be indicated by a minus sign. Leave no cells blank - be certain to enter " 0wherever required. Round your answers to 2 decimal places. Answer is complete but not entirely correct. Here are data on three hedge funds. Each fund chatges its investors an incentive fee of 10% of total returns. Suppose initally that a fund of funds (FF) manager buys equal amounts of each of these funds, and also charges its investors a 10% incentive fee. For simplicity, assume also that management fees other than incentive fees are zero for all funds. a. Compute the rate of return after incentive fees to an investor in the fund of funds. (Do not round your intermediate calculations. Round your answer to 2 decimal places.) b. Suppose that instead of buying shares in each of the three hedge funds, a stand-alone (SA) hedge fund purchases the same portfolio as the three underlying funds. The total value and composition of the SA fund is therefore identical to the one that would result from aggregating the three hedge funds. Consider an investor in the SA fund. After paying 10% incentive fees, what would be the value of the investor's portfolio at the end of the year? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) b. Suppose that instead of buying shares in cach of the three hedge funds, a stand-alone (SA) hedge fund purchases the same portfolio as the three underlying funds. The total value and composition of the SA fund is therefore identical to the one that would result from aggregating the three hedge funds. Consider an investor in the SA fund. After paying 10% incentive fees, what would be the value of the investor's portfolio at the end of the year? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) d. Now suppose that the return on the portfolio held by hedge funali 3 were 35% rather than +35%. Recalculate your answers to parts (b) and (b). (Do not round your intermediate calculations. Negative amount should be indicated by a minus sign. Leave no cells blank-be certain to enter "O" wherever required. Round your answers to 2 decimal places.) a. Compute the rate of return after incentive fees to an imvestor in the fund of funds. (Do not round your intermediate calculations. Round your answer to 2 decimat places.) b. Suppose that instead of buying shares in each of the three hedge funds, a stand-alone (SA) hedge fund purchases the sameporffolio as the three underlying funds. The total value and composition of the SA fund is therefore identical to the one that would result from aggregating the three hedge funds. Consider an investor in the SA fund. After payfing 10% incentive fees, what would be the value of the investor's portfollo at the end of the year? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) b. Suppose that instead of buying shares in each of the three hedge funds, a stand-alone (SA) hedge fund purchases the same portfolio as the three underlying funds. The total value and composition of the SA fund is therefore identical to the one that would fesult from oggregating the three hedge funds. Consider an investor in the SA fund. After paying 10 s incentive foes, what would be the value of the investor's portfolio at the end of the year? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) 3. Answer is complete but not entirely correct. Peccentage refum d. Now suppose that the return on the portfolio held by hedge fund 3 were 35% rather than +35%. Rocalculate your answers to parts () and (o). (Do not round your intermediate calculations. Negative amount should be indicated by a minus sign. Leave no cells blank - be certain to enter " 0wherever required. Round your answers to 2 decimal places. Answer is complete but not entirely correct. Here are data on three hedge funds. Each fund chatges its investors an incentive fee of 10% of total returns. Suppose initally that a fund of funds (FF) manager buys equal amounts of each of these funds, and also charges its investors a 10% incentive fee. For simplicity, assume also that management fees other than incentive fees are zero for all funds. a. Compute the rate of return after incentive fees to an investor in the fund of funds. (Do not round your intermediate calculations. Round your answer to 2 decimal places.) b. Suppose that instead of buying shares in each of the three hedge funds, a stand-alone (SA) hedge fund purchases the same portfolio as the three underlying funds. The total value and composition of the SA fund is therefore identical to the one that would result from aggregating the three hedge funds. Consider an investor in the SA fund. After paying 10% incentive fees, what would be the value of the investor's portfolio at the end of the year? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) b. Suppose that instead of buying shares in cach of the three hedge funds, a stand-alone (SA) hedge fund purchases the same portfolio as the three underlying funds. The total value and composition of the SA fund is therefore identical to the one that would result from aggregating the three hedge funds. Consider an investor in the SA fund. After paying 10% incentive fees, what would be the value of the investor's portfolio at the end of the year? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) d. Now suppose that the return on the portfolio held by hedge funali 3 were 35% rather than +35%. Recalculate your answers to parts (b) and (b). (Do not round your intermediate calculations. Negative amount should be indicated by a minus sign. Leave no cells blank-be certain to enter "O" wherever required. Round your answers to 2 decimal places.)