FIN 798 Alternative Investments Midterm Project Bahrain May 2024 This part of the project is worth 25 points. Each question is worth 5 points. An extra credit question at the end of the quiz is worth 2 points, allowing for 27 possible points. The questions relate to the content from the first four modules of the course. If you have any calculations, please show them in your answers. When completed, please submit a Word document with your answers in the "Midterm Project" submissions folder of D2L. This project is to be completed independently. Make sure the file you submit in the submissions folder is the correct file. Once graded, a new submission will not be accepted. The due date is Tuesday 21st May, by 12:30 am 1. Question about incentive fees. a. From an investor's perspective, are there any benefits for a fund manager to charge an incentive fee? Please explain your answer. b. Could an incentive fee incentivize a portfolio manager to increase a portfolio's risk? Please explain why or why not. 2. Assume you are an investment advisor, and two clients are asking for your advice about hedge fund strategies to potentially invest in. The investors have very