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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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