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Consider a hedge fund with $350 million in assets at the start of the year. The gross return on assets is 15%, the benchmark return
Consider a hedge fund with $350 million in assets at the start of the year. The gross return on assets is 15%, the benchmark return is 14% and the expense ration is 2.15%. For each 1& above the benchmark return the fund managers receive 0.1% incentive bonus. Expenses are charged on the year end value of the funds. What is the rate of return on the fund?
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