Question: Compute the total fee for a private equity fund assuming that the management fee is 0.027 per year, the carried interest (or performane fee) is

Compute the total fee for a private equity fund assuming that the management fee is 0.027 per year, the carried interest (or performane fee) is 0.2, the return on the PE fund's portfolio before fees is 0.052. The fund uses a 0.05 hurdle rate. You can further assume that the PE fund is currently allowed to charge carried interest to all investors.

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