portfolio value). The fund's fee structure has a high watermark feature. What are the total fees you pay over the course of the three years? Enter a number with two decimal points. Answer the question in dollar amount, i.e., if the answer is $20, enter 20.00.
portfolio value). The fund's fee structure has a high watermark feature. What are the total fees you pay over the course of the three years? Enter a number with two decimal points. Answer the question in dollar amount, i.e., if the answer is $20, enter 20.00.
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
Related questions
Question
![You invest $100,000 in a hedge fund with a 2/20 fee structure. For the next 3 years, the hedge fund earns
annual returns of 20.64%, -12.18%, and 52.81%. You make no withdrawals from the fund. Whenever fees
are due, you write a check for that amount to the fund (such that the fund doesn't deduct the fees from your
portfolio value). The fund's fee structure has a high watermark feature. What are the total fees you pay over
the course of the three years? Enter a number with two decimal points. Answer the question in dollar
amount, i.e., if the answer is $20, enter 20.00.
16,874.63](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a6f447f-9050-4a66-b356-4e22080723e4%2F439aec9f-17c8-4a32-99ff-411a2fbd611a%2Fpgo8ygy_processed.png&w=3840&q=75)
Transcribed Image Text:You invest $100,000 in a hedge fund with a 2/20 fee structure. For the next 3 years, the hedge fund earns
annual returns of 20.64%, -12.18%, and 52.81%. You make no withdrawals from the fund. Whenever fees
are due, you write a check for that amount to the fund (such that the fund doesn't deduct the fees from your
portfolio value). The fund's fee structure has a high watermark feature. What are the total fees you pay over
the course of the three years? Enter a number with two decimal points. Answer the question in dollar
amount, i.e., if the answer is $20, enter 20.00.
16,874.63
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