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