Use the Following Information to Answer the Question(s)below

question 59

Multiple Choice

Use the following information to answer the question(s) below.
John Galt is a mutual fund manager at Atlas Asset Management.He can generate an alpha of 2% a year up to $500 million of invested capital.After that amount,his skills are spread too thin,so he cannot add value and his alpha is zero for all investments over $500 million.Atlas Asset Management charges a fee of 0.80% on the total amount of money under management.Assume that there are always investors looking for positive alpha investments and no investor would invest in a fund with a negative alpha.Assume that the fund is in equilibrium,meaning that no investor either takes out money or wishes to invest new money into the fund.
-The amount of fee income that Galt's fund will generate is closest to:

• A)$3.75 million.
• B)$8.00 million.
• C)$10.00 million.
• D)$25.00 million.

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Definitions:

Social Planning

The process of formulating and implementing policies and programs to meet societal needs and improve community welfare and integration.

Community Organization

the process of bringing together individuals and groups to address common issues and objectives, enhancing the social, economic, and environmental well-being of communities.

Ecological Systems Model

A framework that examines individuals through the context of the different environments (micro, meso, exo, macro) that influence their lives.

Equifinality

A principle in systems theory stating that different initial conditions can lead to the same end state.