a financial intermediary that use a high water mark started out grewt. they made a 20% return first year when the benchmark onky generated 10%, resulting in an incentive fee of3%, unfortunately the company had a poor second year losing 10% of the value while fhe benchmark had a 0% return. if they earned a 10% return in the third year with the benchmark earning 0% that same year, they would?

be able to charge a 2% fee,

charge a 3% fee, not be able to charge any, none of the above