Problemyou invested 1500000 with a market-neutral hedge, Ask an Expert

Finance

Problem:

You invested $1,500,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the fund has a high-water-mark provision. Suppose the first year the fund manager loses 9 percent, and the second year she gains 19 percent. Assume management fees are paid at the beginning of each year and performance fees are taken at the end of each year.

Question: What is the management and performance fees paid each year?

Justify your answer.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91145692

Have any Question?Write your Review or question?

Related Questions in Basic Finance

A common stock just paid a 200 dividend that will grow at 5

A common stock just paid a $2.00 dividend that will grow at 5% for years 1 and 2, then at 3% for year 3, then at 2% thereafter. If you require a 9% return, what is the intrinsic value of the stock?

The company metallica heavy metal mining needs to diversify

The Company Metallica Heavy Metal Mining needs to diversify its operations. Some recent monetary information shown here: Stock price--------------------$ 74 Number of shares-------------30,000 Total assets ------------ ...

How does the review of cost records within a review of

How does the review of cost records within a review of project outcomes assist the organisation?

Your sister just deposited 11500 into an investment account

Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 p ...

The interest rate on one-year treasury bonds is 1 the rate

The interest rate on one-year treasury bonds is 1%, the rate on two-year treasury bonds is 0.9%, and the rate on three-year treasury bonds is 0.8%. Using the expectations theory, compute the expected one-year interest ra ...

In what way does service firms and manufacturing

In what way does service firms and manufacturing corporations compare in accounting for direct materials?

Question - you are promised 10000 a year for six years

Question - You are promised $10,000 a year for six years after which you will receive $5,000 a year for six years. If you can earn 8 percent annually, what is the present value of this stream of payments?

Express in other words explain the concept of cost of

Express in other words explain the concept of cost of capital? Do you believe that a firm should use the same cost of capital for all of its projects? Why or why not?

Question - you are finalizing a bank loan for 200000 for

Question - You are finalizing a bank loan for $200,000 for your small business and the closing fees payable to the bank are 2% of the loan. After paying the fees, what will be the net amount of funds from the loan availa ...

Principals of financial markets group assignment -in groups

Principals of Financial Markets Group Assignment - In groups of 3-4, students should choose firstly an industry and secondly two (2) ASX listed companies in this same industry upon which to undertake a fundamental analys ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert