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

question 18

Multiple Choice

A hedge fund sets its fee at 2% and a 20% carry with an 8% benchmark. How much money will a hedge fun make in fees over the course of a year if AUM started at $2,000,000 and ended the year at 2,300,000?

• A) $68,300
• B) $74,000
• C) $80,400
• D) $92,040

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Definitions:

Pollutants

Substances introduced into the environment that cause harm to humans, animals, and the natural ecosystem.

Clear-cutting

A logging practice that involves the complete removal of all trees from a specific area.

Even-aged Stand

A forestry term describing a group of trees of similar age within a specific area, typically resulting from reforestation or natural regeneration following a disturbance.

Seed-tree Cutting

A forestry technique where select seed-bearing trees are left standing to regenerate a forest.