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Question 5 (4 marks) Simple Calculation Use the information in the following table to answer the question. Note the fund started with 100 Net Asset
Question 5 (4 marks) Simple Calculation
Use the information in the following table to answer the question.
Note the fund started with 100 Net Asset Value at the start of 2012.
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |
Return | 8.0% | 4.0% | 1.7% | -4.5% | 9.7% | 10.7% | -0.3% | -14.1% |
Asset Value | 108.00 | 112.36 | 114.27 | 109.18 | 119.82 | 132.64 | 132.27 | 113.64 |
- Given the above hedge fund managers performance, which year(s) would the manager get paid on their high water mark? (1.5 marks).
- Calculate the rolling 3 years average returns and identify which year(s) the managers get paid the high water mark? (1.5 marks).
- Explain why managers are paid the high water mark during the years identified above (1 mark).
this is only info I have
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