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A fund of funds invests across many hedge funds with an expected return of 8% before fees in a particular year. Hedge funds charge 2%

  1. A fund of funds invests across many hedge funds with an expected return of 8% before fees in a particular year. Hedge funds charge 2% 20% for management and incentives fee, respectively. Fund of fund investors require an expected return of 4%. What type of fee structure (incentive fees and management fees) for the fund of fund delivers an expected return of 4%?

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