of 15% of ay investment returns above the l-bill răte, d suffers a loss of 10.5%. What rate of return must it earn in the s ediate calculations. Round your percentage answer to 2 decima

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A hedge fund charges an incentive fee of 15% of any investment returns above the T-bill rate, which currently is 2.0% but is subject to a
high water mark, In the first year, the fund suffers a loss of 10,5%, What rate of return must it earn in the second year to be eligible for
an incentive fee? (Do not round intermediate calculations. Round your percentage answer to 2 decimal places.)
Rate of return
Transcribed Image Text:26 Required: A hedge fund charges an incentive fee of 15% of any investment returns above the T-bill rate, which currently is 2.0% but is subject to a high water mark, In the first year, the fund suffers a loss of 10,5%, What rate of return must it earn in the second year to be eligible for an incentive fee? (Do not round intermediate calculations. Round your percentage answer to 2 decimal places.) Rate of return
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