What would Yuri's fee be if he manages a firm's $20,000,000 portfolio with a fee of 50 basis points?

To determine Yuri's fee for managing the firm's $20,000,000 portfolio at a rate of 50 basis points, it's essential to understand what basis points represent. One basis point is equivalent to one-hundredth of a percent (0.01%). Therefore, 50 basis points would be 0.50%.

To calculate the fee, you can follow these steps:

1. Convert the fee from basis points to a percentage: 50 basis points = 0.50% = 0.005 (in decimal form).

2. Multiply the portfolio amount by the fee percentage: Portfolio amount = $20,000,000 Fee = $20,000,000 * 0.005 = $100,000.

Therefore, Yuri’s fee for managing a $20 million portfolio at a fee of 50 basis points would be $100,000. This calculation illustrates how management fees based on asset amounts are computed and highlights the importance of understanding financial terms like basis points in the asset management field.