You are the Asset Manager at Global Investment Bank (GIB). Mrs Young, your client, has $5,600,000 to invest. You agreed on an average return of 8 per cent per annum. The management fees charged to Mrs Young is 1.75 per cent. The performance fee is 15 per cent for returns more than 8 per cent. At the end of the year Mrs Young's investment grew by 12 per cent to $6, 272,000. Answer the following questions: 

i) Given the agreed management and performance fees, how much would you earn for GIB? 

ii) What is the percentage of total fees paid by Mrs Young? 

 iii) Comment on the overall returns for Mrs Young. 

b) Karen, the Wealth Manager at Distinct Investment Bank, informed you that she also provides financial planning advisory services. With your newly acquired knowledge of investment banking explain four services offered by Karen. How does Karen aim to help her clients?

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i To calculate the fees earned by GIB we need to calculate the management fees and performance fees ... View the full answer