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Davia Spencer is a manager at Halt Dome Asset Managament. She can generate an alpha of 1.74% per year on up bo 5145 mition of

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Davia Spencer is a manager at Halt Dome Asset Managament. She can generate an alpha of 1.74% per year on up bo 5145 mition of assets. Affer that her skils are scread too thin, so she camoe. year). Assume that thene are always kivestors looking lor postive apha and no itwestor would invest in a fund with a negative apha. in equilibrum, that is, when no investor either takes out money of withes to imvest new money. a. What alpha do investors in Davita's fund expoct to roobive? b. How much money wil Dovita have under management? c. How much money will Hall Dome generase in fee income? a. What apha do invessors in Davia's Aind expect la receive? Investors expect to receive an apha of S. (Round to two decimal places.) b. How much money will Davia have under managemenf? The amount that Davita will havo under management is 1 malion. (Round to the nearest integer.) c. How much money will Half Dome generate in tee income? The amount that Hal Dorre wit generate in fee income is 5 milion. (Round to two becimal places.)

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