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Assume Cambridge Ventures raises $10,060,000 for a private equity fund with a one- year life. The fund has a hurdle rate of 4 percent, above

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Assume Cambridge Ventures raises $10,060,000 for a private equity fund with a one- year life. The fund has a hurdle rate of 4 percent, above which it earns a carried interest of 10 percent. If Cambridge generates a return of 17 percent, what is the firm's carried interest for the year? Carried interest

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