A hedge fund with net asset value of $90 per share currently has a high water mark of $96. Suppose it is January 1, the standard deviation of the funds annual returns is 37%, and the risk-free rate is 6%. The fund has an incentive fee of 15%.

a) What would the annual incentive fee be worth if the fund had no high water mark and it earned its incentive fee on its total return? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

b) What would the annual incentive fee be worth if the fund had no high water mark and it earned its incentive fee on its return in excess of the risk-free rate? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

c) Recalculate the incentive fee value for part (b) assuming that an increase in fund leverage increases volatility to 47%. (Do not round intermediate calculations. Round your answer to 3 decimal places.)