Question
A hedge fund with $2 billion of assets charges a management fee of 1.5% and an incentive fee of 20% of returns over a money
A hedge fund with $2 billion of assets charges a management fee of 1.5% and an incentive fee of 20% of returns over a money market rate, which currently is 6%.
| Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returnsof: |
| Portfolio rate of return (%) | ($ million) | Total fee (%) | |
| a. | 5 | ||
| b. | 0 | ||
| c. | 5 | ||
| d. | 10 | ||
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
