You invested $1,100,000 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 11 percent and the second year she gains 19 percent. Assume management
fees are pald 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?