A high-water mark of $115.25 million was established two years ago for Korean Fried Chicken (KFC) hedge fund. The end-of-year value before fees for last year was $124.58 million. This year’s end-of-year value before fees is $145.50 million. The fund charges “2 and 20.” Management fees are paid independently of incentive fees and are calculated on end-of-year values. What is the total fee paid this year? A. $9.91 million B. $8.96 million C. $7.78 million D. $6.87 million
A high-water mark of $115.25 million was established two years ago for Korean Fried Chicken (KFC) hedge fund. The end-of-year value before fees for last year was $124.58 million. This year’s end-of-year value before fees is $145.50 million. The fund charges “2 and 20.” Management fees are paid independently of incentive fees and are calculated on end-of-year values. What is the total fee paid this year? A. $9.91 million B. $8.96 million C. $7.78 million D. $6.87 million
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter2: Descriptive Statistics
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Problem 17P: Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual...
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A high-water mark of $115.25 million was established two years ago for Korean Fried Chicken (KFC) hedge fund. The end-of-year value before fees for last year was $124.58 million. This year’s end-of-year value before fees is $145.50 million. The fund charges “2 and 20.” Management fees are paid independently of incentive fees and are calculated on end-of-year values. What is the total fee paid this year?
A.
$9.91 million
B.
$8.96 million
C.
$7.78 million
D.
$6.87 million
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