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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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You invested $1,500,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the fund has a high-water-mark provision. Suppose the first year the fund manager loses 9 percent, and the second year she gains 19 percent. Assume management fees are paid at the beginning of each year and performance fees are taken at the end of each year. |
           Â
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What are the management and performance fees paid each year? (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places. Omit the "$" sign in your response.) |
             Â
| Â | Â Â Â Â Â Year 1 | Â Â Â Â Â Year 2 |
| Â Â Management fees | $Â Â Â | $Â Â Â |
| Â Â Performance fees | $Â Â Â | $ Â Â |
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