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You learn of a well performing hedge fund. This particular fund charges 2 plus 10 for investments. Although it has performed well in the past,
You learn of a well performing hedge fund. This particular fund charges 2 plus 10 for investments. Although it has performed well in the past, you are concerned about the future growth. Please explain what the 2 plus 10 structure implies? For initial investment, what returns must be generated over the next year to realize breakeven from your point of view? What returns must be generated from year one to two to realize breakeven from your point of view?
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