6. [2] A hedge fund charges 2 plus 20%. Investors want a return after fees of...

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6. [2] A hedge fund charges 2 plus 20%. Investors want a return after fees of at least 15%. How much does the hedge fund have to earn, before fees, to provide investors with this return? Assume that the incentive fee is paid on the net return after management fees have been subtracted. 6. [2] A hedge fund charges 2 plus 20%. Investors want a return after fees of at least 15%. How much does the hedge fund have to earn, before fees, to provide investors with this return? Assume that the incentive fee is paid on the net return after management fees have been subtracted.

Answer rating: 100% (QA)

The hedge fund needs a gain of 1923 before fees to provide a 15 return to investors after all fees a... View the full answer