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Consider a hedge fund with $200 million at the start of the year. The benchmark S&P 500 index was up 16.5% during the same period.

Consider a hedge fund with $200 million at the start of the year. The benchmark S&P 500 index was up 16.5% during the same period. The gross return on assets is 21% and the expense ratio is 2%. For each 1% above the benchmark return the fund managers receive 0.1% incentive bonus. What was the annual return on this fund?

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