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A hedge fund with $1.5 billion of assets charges a management fee of 2.5% and an incentive fee of 10% of returns over a money

A hedge fund with $1.5 billion of assets charges a management fee of 2.5% and an incentive fee of 10% of returns over a money market rate, which currently is 8.2%. Calculate total fees, both in dollars and as a percent of assets under management, for the portfolio returns in the table below. (Enter your answers for Total Fee ($ millions) in millions not dollars. Round your answers to 1 decimal place.)

Portfolio Rate of Return (%) Total Fee ($ million) Total Fee (%)

a .-5 ________________ _____________ b. 0 ________________ _____________ c. 5 ________________ ______________ d. 10 __________________ _______________

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