Hedge fund X has the following characteristics. It currently manages a portfolio worth of $500...
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Hedge fund X has the following characteristics. It currently manages a portfolio worth of $500 mil. The fund has a typical two and twenty fee structure. According to the Black-Scholes formula, the value of the incentive scheme is $53.93, i.e., c = $53.93. What is the expected funds total fee (in %) for the next year?
a.
10.79%
b.
12.79%
c.
2.16%
d.
4.16%
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