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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:
Corpus Albicans
A small, white scar tissue that forms in the ovary at the site of a ruptured follicle after ovulation.
Ruptured Follicle
The release of an ovum from a follicle in the ovary during the menstrual cycle, often referred to as ovulation.
Corpus Luteum
A temporary endocrine structure in female ovaries that is involved in the production of progesterone during the menstrual cycle and early pregnancy.
Vesicular Follicle
A fluid-filled structure in the ovary that contains a maturing ovum or egg.
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