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 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
Problem 1PS
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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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