A hedge fund charges an incentive fee of 25% of any investment returns above the T-bill rate, which currently is 2.5%. In the first year,
A hedge fund charges an incentive fee of 25% of any investment returns above the T-bill rate, which currently is 2.5%. In the first year, the fund suffers a loss of 6.5%. What rate of return must it earn in the second year to be eligible for an incentive fee?
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Authors: William Brueggeman, Jeffrey Fisher
17th Edition
1264072945, 978-1264072941
