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Suppose you are an active fund manager with a limited capacity to generate alpha of $ 5 million per year. You charge a fee of

Suppose you are an active fund manager with a limited capacity to generate alpha of $5 million per year. You charge a fee of 1% per year. You currently have $300 million asset under management (AUM). What should happen to your fund in equilibrium?
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You should get fund inflows of $200 million
You should get fund outflow of $3 million
You should get fund outflow of $200 million
You should get fund inflow of $500 million
You should get fund inflow of $3 million

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