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

question 24

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 $1,000,000 and ended the year at 1,120,000?

• A) $8,000
• B) $22,400
• C) $30,400
• D) $38,000

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Definitions:

Genotype

The genetic makeup of an organism, consisting of all its genes and their variations.

Gene Expression

The process by which information from a gene is used in the synthesis of a functional gene product, often a protein, impacting the cell's structure and function.

Leukemia

is a type of cancer that affects blood-forming tissues, including the bone marrow and the lymphatic system, leading to an overproduction of abnormal white blood cells.

Dizygotic Twins

Fraternal twins; these siblings result from two separately fertilized eggs, so they are no more similar genetically than nontwin siblings are.