What are the management and performance fees

Assignment Help Finance Basics
Reference no: EM131693582

You invested $1,050,000 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 6 percent, and the second year she gains 18 percent. Assume management fees are paid at the beginning of each year and performance fees are taken at the end of each year.

What are the management and performance fees paid each year? (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

       Year 1     Year 2  

Management fees$   $     

Performance fees$   $

Reference no: EM131693582

Questions Cloud

What is the equity value of hgc : You determine that an approriate rate of return for HGC is 12.5%. If HGC has 100 million shares outstanding, what is the Equity Value of HGC?
Ethics is not following culturally accepted norms : "What Ethics is Not, " you read the statement "Ethics is not following culturally accepted norms.
Discuss tax system in this country is unfair and ridiculous : He doesn't have any spending money at all, and he's always having to make excuses about not being able to go out
Describe fisher equation and the basic concept : Describe Fisher equation and the basic concept. Summary Efficient or effective market what is the difference between interest rate and nominal interest rate.
What are the management and performance fees : Assume management fees are paid at the beginning of each year and performance fees are taken at the end of each year.
Calculate the cost of sugar smooth ending inventory : Calculate the cost of Sugar smooth's ending inventory at the end of the first year under variable costing.
Compute the cost of ending inventory under variable costing : Variable Costing, Absorption Costing, Inventory Valuation Zeitgeist Company manufactures silicon sleeves for MP3 players.
Calculate the EAR : Average borrowings during the year are expected to be $2 million. The firm has $100,000 on deposit at the bank. Calculate the EAR
Compute the anticipated break-even sales : For the current year ended October 31, Friedman Company expects fixed costs of $14,300,000, a unit variable cost of $250, and a unit selling price of $380.

Reviews

Write a Review

Finance Basics Questions & Answers

  The process of industrialization was one of the most

the process of industrialization was one of the most transformational series of events in human

  What is the calculation of a firm sustainable growth rate

How can traditional DuPont analysis or extended DuPont analysis provide additional insight into changes in a firm's profitability?

  What is the receivable turnover

Rise Above This, Inc., has an average collection period of 27 days. Its average daily investment in receivables is $43,300. Assume 365 days per year. What is the receivable turnover (4 decimal places) and annual credit sales?

  What is its marginal cost of capital to raise needed funds

If Killer needs to raise $220,000 and it expects to generate $100,000 in retained earnings this year, what is its marginal cost of capital to raise the needed funds?

  Find where the cash flow effect

Find where the cash flow effect of each of the following transactions are reported in the statement of cash flows

  Jessica wants to accumulate 15000 by the end of 6 years in

jessica wants to accumulate 15000 by the end of 6 years in a special bank account which she had opened for this

  Key financial information necessary

The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value.

  Prepare an unadjusted trial balance from the spreadsheet

The company purchased $7,500,000 of raw material inventory on account. "On account" means that their suppliers have not yet been paid. Prepare an unadjusted trial balance from the spreadsheet

  What is going to happen to value of bond as time goes by

Consider the following bond: Face value = $1,000; coupon rate = 8%; yield to maturity = 5%; maturity = 5 years.

  What rate of return did japan life realize this investment

What rate of return did Japan Life realize on this investment in yen terms?

  Given that advanced magnetics was up by 439 percent for

given that advanced magnetics was up by 439 percent for 2006 why didnt all investors hold advanced

  Compute the amount of monthly payment

Suppose that in 25 years you will need $500,000 for your retirement retirement is actually 25 years away, and you want to have saved $500,000.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd