In: Finance
A hedge fund with $1.3 billion of assets charges a management
fee of 2% and an incentive fee of 20% of returns over a money
market rate, which currently is 4%. Calculate total fees, both in
dollars and as a percent of assets under management, for portfolio
returns of: (Enter your answers in millions rounded to 1
decimal place.)
Portfolio Rate of Return (%) | Total Fee ($ million) |
Total Fee (%) |
|
a. | −1 | ||
b. | 0 | ||
c. | 4 | ||
d. | 8 | ||