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  3. (a) (8 marks) a large us hedge fund has a value of

(a) (8 marks) A large US hedge fund has a value of $100 million at...

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Finance

(a) (8 marks) A large US hedge fund has a value of $100 million at the beginning of the year. The fund charges a 2% management fee based on assets under management at the beginning of the year and a 20% incentive fee with a 10% hurdle rate. Incentive fees are calculated net of management fees. The value at the end of the year before fees is $112 million.

Calculate the net return to investors.

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