Question
A hedge fund with $2.5 billion of assets charges a management fee of 2% and an incentive fee of 20% of returns over a money
A hedge fund with $2.5 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 4%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of:
Portfolio Rate of Return
(%)
a. -5
b. 0
c. 4
d. 8
What is total fee in million and percentage?
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
