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A Hedge fund has a management fee of 3% on their assets under management and...

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Finance

A Hedge fund has a management fee of 3% on their assets under management and the incentive fee is 56% for any return above 20%. If the average 7-year annual return for this hedge fund is 27% and the standard deviation of these returns is 10%, what is your estimate of Sharpe Ratio? Assume an annual risk free rate of 4%.

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