GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
11th Edition
ISBN: 9781260201550
Author: Bodie
Publisher: MCG
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Chapter 26, Problem 9PS
Summary Introduction
(a)
To calculate:
The total fees, both in dollars and percents for portfolio return of
Introduction:
The total fees is a sum total of management fees and incentive fees and when it is divided by the asset value then the outcome is the total fees in terms of percentage.
Summary Introduction
(b)
To calculate:
The total fees, both in dollars and percents for portfolio return of
Introduction:
The total fees is a sum total of management fees and incentive fees and when it is divided by the asset value then the outcome is the total fees in terms of percentage.
Summary Introduction
(c)
To calculate:
The total fees, both in dollars and percents for portfolio return of
Introduction:
The total fees is a sum total of management fees and incentive fees and when it is divided by the asset value then the outcome is the total fees in terms of percentage.
Summary Introduction
(d)
To calculate:
The total fees, both in dollars and percents for portfolio return of
Introduction:
The total fees is a sum total of management fees and incentive fees and when it is divided by the asset value then the outcome is the total fees in terms of percentage.
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Required:
A hedge fund with $1.8 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money market
rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of:
(Enter your answers in millions rounded to 1 decimal place.)
Portfolio Rate
of Return (%)
a. -1
b. 0
c. 6
d. 12
Total Fee
($ million)
Total Fee
(%)
Required:
A hedge fund with $1.7 billion of assets charges a management fee of 2% and an incentive fee of 20% of returns over a money market
rate, which currently is 5%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of
(Enter your answers in millions rounded to 1 decimal place.)
Answer is complete but not entirely correct.
Portfolio
Rate of
Return (%)
b.0
c. 5
d. 10
Total Fee
($ million)
34,000,000.0
34,000,000.0
34,000,000.0
51,000,000.0
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(%)
2.0
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2.0
3.0
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Required:
A hedge fund with $1.6 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money market
rate, which currently is 4%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of:
(Enter your answers in millions rounded to 1 decimal place.)
18
Portfolio Rate
of Return (%)
Total Fee
Total Fee
(%)
X 01:57:48
($ million)
a.
-4
b.
C.
寸
d.
8.
Chapter 26 Solutions
GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
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