You represent the Texas State Pension Fund. On your direction, the fund invested $100 Million dollars into Cowher Capital Management, a large hedge fund. You negotiated a "High Water Mark" provision, and a 1%/20% fee schedule. There is a lock-up provision so you are not allowed to withdraw any funds until at least three years have passed. If the fund has the following annual returns of 10%, -25%, -20%, and 45% (also assume like we said in class, the management fee is paid at the beginning of the year, but performance fee at year end) you do not add or remove any money from the fund answer the following:

a. In what years, do you pay the performance fee?

b. What is the total fee percentage paid in the final year?

c. What your ending balance?