Citadel invests $65.75 billion in each of Samsung Hedge Fund (SHF) and Apple Hedge Fund (AHF). Citadel has “1 and 20” fee structure and its management fees and incentive fees are calculated independently at the end of each year. After one year, the investment in SHF is valued at $85.45 billion and the investment in AHF is valued at $91.75 billion. The annual return to an investor in Citadel is closest to A. 16.76%. B. 20.15%. C. 26.45%. D. 31.37%. Clear my choice
Citadel invests $65.75 billion in each of Samsung Hedge Fund (SHF) and Apple Hedge Fund (AHF). Citadel has “1 and 20” fee structure and its management fees and incentive fees are calculated independently at the end of each year. After one year, the investment in SHF is valued at $85.45 billion and the investment in AHF is valued at $91.75 billion. The annual return to an investor in Citadel is closest to A. 16.76%. B. 20.15%. C. 26.45%. D. 31.37%. Clear my choice
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 1P
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Citadel invests $65.75 billion in each of Samsung Hedge Fund (SHF) and Apple Hedge Fund (AHF). Citadel has “1 and 20” fee structure and its management fees and incentive fees are calculated independently at the end of each year. After one year, the investment in SHF is valued at $85.45 billion and the investment in AHF is valued at $91.75 billion. The annual return to an investor in Citadel is closest to
A.
16.76%.
B.
20.15%.
C.
26.45%.
D.
31.37%.
Clear my choice
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