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Ksivusya [100]
3 years ago
13

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?
Year 1 Year 2
Management fees $ $
Performance fees $ $
Business
1 answer:
Kryger [21]3 years ago
8 0

Answer:

I am sorry

Explanation:

I dont do business

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The additional information for this question is:

January 1, 2016 $14

December 31, 2016 15

What amount should Olympic recognize as compensation expense for 2016?

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To find this figure, we take as a reference the price of the fair value of the options that is $ 5 on the grant date, multiplied by the options on the shares totaling $ 30,000. Then, it must be divided between the award period that according to the problem is 3 years (2018-2021). This operation results in a total of $ 50,000 that should be recognized as compensation.

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Answer:

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