The information below applies to the next four sub-questions: You run a hedge fund with EUR 150 million under management. You charge a management fee of 1.85 percent.

I. What is the management fee assessed on the entire fund for the first three months of 2020 assuming no in- and outflows of money during that period?

II. Assume the same facts from above and that the hedge fund earned 5.4 percent (gross return before fees) at the end of the year. What performance fee would the management company earn if the fund paid a performance fee of 20 percent?

III. What is the performance fee, assuming the same facts from above but incorporating a hurdle rate of 5 percent?

IV. How do the numbers from II. and III. change when the hedge fund earned 13 percent (gross return before fees) at the end of the year?