Chapter 20, Problem 11PS

A hedge fund with $\$\text{1}$ billion of assets charges a management fee of $\text{2}\%$ and an incentive of $\text{2}0\%$ of returns over a money market rate, which currently is $\text{5}\%$ . Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: $\left(\text{LO 2}0-\text{4}\right)$
a. $-\text{5}\%.$
b. $0.$
C. $\text{5}\%.$
D. $\text{1}0\%.$