Question: A hedge fund has a 2 & 20 fee structure: 2% of management fee plus 20% incentive fee on fund returns in excess of T-Bill

A hedge fund has a 2 & 20 fee structure: 2% of management fee plus 20% incentive fee on fund returns in excess of T-Bill rate. In a performance reporting period, the hedge fund yields 29% when the T-Bill rate is 3%. What are the fees to the hedge fund managers?

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