Hedge Fund Returns

Consider two investments. At the end of the year, before fees, you have a $$1\mathrm{.}4$ million investment in a hedge

fund that charges $1\mathrm{.}1\%$ in management fees and $12\%$ in incentive fees over a threshold of $7\%.$ Also at the end

of the year is the second investment of $$1\mathrm{.}4$ million in a mutual fund that has an expense ratio of $1\mathrm{.}1\%.$

The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the

required analysis to answer the question below. Do not round intermediate calculations. Round your answers to

two decimal places.

Open spreadsheet

Compute the after fee return for each investment if the hedge fund had earned $13\%$ and the mutual fund had

earned $10\%.$

Hedge fund's return:

$\%$

Mutual fund's return:

$\%$