Consider a hedge fund with $400 million in assets, $60 million in debt, and 16 million shares at the start of the year and with $500 million in assets, $40 million in debt, and 20 million shares at the end of the year. During the year, investors have received an income dividend of $.75 per share. Assuming that the total expense ratio is 2.75%, what is the rate of return on the fund?

Question

Quizplus · Accepted Answer

NAV₀ = 11eaaae8_8b39_8b07_a4b8_a3cac461b466_TB6474_11 = 21.25 NAV₁ = 11eaaae8_8b39_8b08_a4b8_432f39a0c111_TB6474_11 20 = 22.31 Net return = 11eaaae8_8b39_8b09_a4b8_9b304e33fdbd_TB6474_11 = 8.52%

Consider a Hedge Fund with $400 Million in Assets, $60