Problem 17-04 CMD Asset Management has the following fee structure for clients in its equity fund: 1.10% of first $5 million invested 0.85 %of next $5 million invested 0.65% of next $10 million invested 0.45 % above $20 million a. Calculate the annual dollar fees paid by Client 1, who has $31 million under management, and Client 2, who has $96 million under management. Do not round intermediate calculations. Round your answers to the nearest dollar. Client 1: $ Client 2: $ 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 declines (in percentage terms) with increases in assets under management? Costs of management -Select- at the same rate as the managed assets because -Select- economies of scale exist in managing assets