Tuscin Capital is a hedge fund with an initial investment capital of $100 million. In its first year, the fund earns a return of 30%. The fund charges a 2% management fee based on assets under management at the end of the year and a 20% incentive fee with a hurdle rate of 4% (applicable on the beginning capital position for the year). The ending values of the fund (before fees for the current year) for the first 3 years are given below: 2009 = $130 million 2010 = $110 million 2011 = $140 million Other information: A high water mark provision applies. The incentive fee is based on returns in excess of the hurdle rate and is calculated net of management fee. Investors effective return for 2011 is closest to:

Group of answer choices

10.35%

22.86%

25.39%