Shark Hedge Fund has a hurdle rate of 5% and an incentive fee of 20%. It also charges a 2% management or asset fee. It does not have a high watermark. What minimum return must the fund earn in order for the manager to receive an incentive fee?

Answer rating: 100% (QA)

To calculate the minimum return required for the fund manager to receive an incentive fee we need to ... View the full answer