A hedge fund charges $2$ plus $20\%.$ Assume that the incentive fee is paid on the net return after management fees have been subtracted. How much does the hedge fund have to earn to provide investors a return after fees of $10\%?$

Question $19$Answer

a$.$

$12\mathrm{.}5\%$

b$.$

$20\%$

c$.$

$14\mathrm{.}5\%$

d$.$

$2\%$