Earn in the second year to be eligible for an incentive fee

Assignment Help Financial Management

Reference no: EM131353422

A hedge fund charges an incentive fee of 10% of any investment returns above the T-bill rate, which currently is 1.5%. In the first year, the fund suffers a loss of 6.8%. What rate of return must it earn in the second year to be eligible for an incentive fee? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131353422

Questions Cloud

What is the gain or loss on the futures contract : The September CBOT Treasury bond futures contract has a quoted price of 90'12. If annual interest rates go up by 1.25 percentage point, what is the gain or loss on the futures contract? (Assume at $1,000 par value, and round to the nearest whole doll..

Budgets and integrated communications programs : Budgets and Integrated Communications Programs - From the e-Activity, determine the best method of setting the health care provider's communications budget. Explain your rationale.

Determine the unrealized holding gain or loss on the note : ACC/422- Bridgeport Corporation has elected to use the fair value option for one of its notes payable. Determine the unrealized holding gain or loss on the note. Prepare the entry to record any unrealized holding gain or loss.

Standard temperature when the temperature : 1) What is the new volume of a 10.0 cm3 container at 500.00 K when the temperature is adjusted to standard temeperature? 2) What is the new volume of a 100.00 cm3 container at standard temperature when the temperature is adjusted to 373 K? 3) What is..

Earn in the second year to be eligible for an incentive fee : A hedge fund charges an incentive fee of 10% of any investment returns above the T-bill rate, which currently is 1.5%. In the first year, the fund suffers a loss of 6.8%. What rate of return must it earn in the second year to be eligible for an incen..

West muskegon machining and manufacturing : West Muskegon Machining and Manufacturing (WM3) is owned by Wally O’Leo, a degreed manufacturing engineer. Upon graduation from college 20 years ago, Wally went to work for his father in the family business. When his father retired last year, Wally b..

What is the maximum inversion temperature : According to Hill and Lounasmaa,- What is the maximum inversion temperature?- What point on the inversion curve has the maximum pressure?

Resolution of issues associated with risk : According the text, the fundamental purpose of a compliance plan is to create an organizational culture that promotes the prevention, identification, and resolution of issues associated with risk.

What is the new temperature of the gas : 1) What is the new pressure of a set volume of gas at 101 kPa when it is heated from 25 C to 50 C? 2) What is the new pressure of the set volume of gas at 200 k PA when it is heated from 0 C to 100 C? 3) A container of gas at 25 C and 101 kPA increas..

User Account

All Pages