A Hedge Fund Sets Its Fee at 2% and a 20

question 43

Multiple Choice

A hedge fund sets its fee at 2% and a 20% carry with an 8% benchmark. What is the Net IRR to the investors if over the course of a year if AUM started at $1,000,000 and ended the year at 1,120,000?

• A) 8.96%
• B) 10.96%
• C) 11.30%
• D) 12.00%

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Definitions:

Liberal Protestants

Members of the Protestant denomination who hold more progressive, open-minded theological views, often emphasizing social justice.

Controlled Drinking

is an approach in alcohol addiction treatment aimed at helping individuals moderate their alcohol intake rather than abstaining entirely.

Alcoholics

Individuals who suffer from alcoholism, a chronic disorder characterized by dependency on alcohol, inability to control drinking, and withdrawal symptoms when attempting to stop.

Public Drunkenness

The act of being intoxicated with alcohol in a public setting, which is considered a legal offense in many jurisdictions.