An analyst gathers the following information about a hedge fund:
Beginning-of-year assets under management (AUM): $500 million
Annual return before fees: 22%
Management fee (based on end-of-year AUM before fees): 2%
Incentive fee: 15%
Hard hurdle rate: 10%
The incentive fee (in $ millions) based on returns net of management fees is closest to:
Exam-Like
A
7.2
46.7%
B
13.0
20.0%
C
14.7
33.3%
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An analyst gathers the following information about a hedge fund:
- Beginning-of-year assets under management (AUM): $500 million
- Annual return before fees: 22%
- Management fee (based on end-of-year AUM before fees): 2%
- Incentive fee: 15%
- Hard hurdle rate: 10%
The incentive fee (in $ millions) based on returns net of management fees is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
