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A hedge fund with $1 billion of assets charges a management fee of 2% and an incentive fee of 20% of returns over a money
A hedge fund with $1 billion of assets charges a management fee of 2% and an incentive fee of 20% of returns over a money market rate, which currently is 5%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of:
a. 5%.
b. 0.
c. 5%.
d. 10%.
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