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Required: A hedge fund charges an incentive fee of 5% of any investment returns above the T-bill rate, which currently is 2.0% but is subject

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Required: A hedge fund charges an incentive fee of 5% of any investment returns above the T-bill rate, which currently is 2.0% but is subject to a high water mark. In the first year, the fund suffers a loss of 9.0%. What rate of return must it earn in the second year to be eligible for an incentive fee? (Do not round intermediate calculations. Round your percentage answer to 2 decimal places.)

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