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A hedge fund with $4.4 billion of assets charges a management fee of 1.5% and an incentive fee of 10% of returns over a money market rate, which currently is 7.2%. Required: Calculate total fees, both in dollars and as a percent of assets under management, for the portfolio returns in the table below. Note: Enter your answers for Total Fee ($ millions) in millions not dollars. Round your answers to 2 decimal places. Portfolio Rate of Return (%) Total Fee ($ million) Total Fee (%) ه نه نه a. -5 b. 0 5 d. 10 $ 78.32 1.78

A hedge fund with $4.4 billion of assets charges a management fee of 1.5% and an incentive fee of 10% of returns over a money market rate, which currently is 7.2%. Required: Calculate total fees, both in dollars and as a percent of assets under management, for the portfolio returns in the table below. Note: Enter your answers for Total Fee ($ millions) in millions not dollars. Round your answers to 2 decimal places. Portfolio Rate of Return (%) Total Fee ($ million) Total Fee (%) ه نه نه a. -5 b. 0 5 d. 10 $ 78.32 1.78

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A hedge fund with $4.4 billion of assets charges a management fee of 1.5% and an incentive fee of 10% of returns over a money market rate, which currently is 7.2%. Required: Calculate total fees, both in dollars and as a percent of assets under management, for the portfolio returns in the table below. Note: Enter your answers for Total Fee ($ millions) in millions not dollars. Round your answers to 2 decimal places. Portfolio Rate of Return (%) Total Fee ($ million) Total Fee (%) ه ن فنه a. -5 b. 0 C. 5 d. 10 $ 78.32 1.78
Transcribed Image Text:A hedge fund with $4.4 billion of assets charges a management fee of 1.5% and an incentive fee of 10% of returns over a money market rate, which currently is 7.2%. Required: Calculate total fees, both in dollars and as a percent of assets under management, for the portfolio returns in the table below. Note: Enter your answers for Total Fee ($ millions) in millions not dollars. Round your answers to 2 decimal places. Portfolio Rate of Return (%) Total Fee ($ million) Total Fee (%) ه ن فنه a. -5 b. 0 C. 5 d. 10 $ 78.32 1.78
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