# Alternative Investments - Alternative Investments Section 2

>>>>>>>>Alternative Investments Section 2

• A

\$12.528 million.  • B

\$13.680 million.  • C

\$14.928 million.  • Option : A
• Explanation : Management fee = \$256 million * 0.03 = \$7.68 million
Incentive fee = (\$256 – \$200 – \$16 – \$7.68) million * 0.15 = \$4.848 million
Total fees to SHM Capital = \$12.528 million

• A

20.54%.  • B

21.16%.  • C

21.74%.  • Option : C
• Explanation : Investor’s return = (\$256 - \$200 - \$12.528) / \$200 = 21.74%

• A

\$12.52 million  • B

\$13.68 million.  • C

\$14.92 million.  • Option : B
• Explanation : Management fee = \$256 million * 0.03 = \$7.68 million
Incentive fee = (\$256 – \$200 – \$16) million * 0.15 = \$6.00 million
Total fees to SHM Capital = \$13.68 million

• A

20.54%.  • B

21.16%.  • C

22.74%.  • Option : B
• Explanation : Investor’s return = (\$256 - \$200 - \$13.68) / \$200 = 21.16%

• A

\$2.10 million.  • B

\$4.65 million.  • C

\$6.75 million.  • Option : C
• Explanation : Management fee = \$225 million * 0.03 = \$6.75 million
No incentive fee because the fund has declined in value
Total fees to SHM Capital = \$6.75 million