PLEASE ANSWER QUESTION CORRECTLY

Problem 17-04 CMD Asset Management has the following fee structure for clients in its equity fund: a. Calculate the annual dollar fees paid by Client 1, who has $34 million under management, and Cient 2, who has $90 milion under management. Do not round intermediate caiculations. Round your answers to the nesrest dollar- Client 1: 5 Client 2:5 b. Calculate the fees paid by both clients as a percentage of their assets under management. Do not round intermediate calculations. Round your answers to two decimal places: Client 1: Client 2 : c. What is the economic rationale for a fee schedule that dedines (in percentage terms) with increases in assets under management? Costs of management at the same rate as the managed ascets because economies of scaie exist in manuging assets