A hedge fund charges the common 2 plus 20% fee structure, i.e. 2% management fee and 20% of any net (after management fees) profits. A pension fund invests in the hedge fund. i. Plot the return to the pension fund as a function of the return to the hedge fund. ii. In addition to the usual market risk from investing, what type of risk is faced by the pension fund manager investing in the hedge fund? Explain with respect to the hedge fund managers incentives. word count: 100 words maximum iii. Name and explain one feature in the hedge fund contract that will increase the risk identified in part ii above, and one feature that will reduce this risk.