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WA hedge fund with net asset value of $90 per share currently has a high-water...

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Accounting

WA hedge fund with net asset value of $90 per share currently has a high-water mark of $96. Suppose it is January 1, the standard deviation of the funds annual returns is 37%, and the risk-free rate is 6%. The fund has an incentive fee of 15% of annual returns, but its current high-water mark is $96, and net asset value is $90.hat would the annual incentive fee be worth if the fund had no high-water mark and it earned its incentive fee on its total return?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
What would the annual incentive fee be worth if the fund had no high-water mark and it earned its incentive fee on its return in excess of the risk-free rate?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Recalculate the incentive fee value for part (b) if an increase in fund leverage increases volatility to 47%.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

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