Based on the available information, please complete the following parts.

1. Calculate the return for each year and also decide the high watermark;
2. Calculate the management fee in dollars, assume it is 1%;
3. Calculate the incentive fee net of management fee in dollars;
4. Lastly calculate the net returns to the investors. You may show full workings in the space below or use an excel file to answer it (and submit through excel link).                                                                                            

	Year 1	Year 2	Year 3	Year 4
Initial Value	300,000	285,000	325,000	290,000
Ending Value	285,000	325,000	290,000	322,000
Return
High Watermark
Hurdle rate	10%	10%	10%	10%
Management fee ($)
Incentive fee net of management fee ($)
Net returns to investors

Answer rating: 100% (QA)

1 Return for each year Return is calculated using the formula Ending Value Initial Value Initial Value 100 Year 1 285000 300000 300000 100 5 Year 2 32... View the full answer