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

question 50

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 $4,000,000 and ended the year at 5,300,000?

• A) 28.65%
• B) 26.87%
• C) 24.95%
• D) 22.00%

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Definitions:

Training

The process of teaching or developing in oneself or others, the skills and knowledge that relate to specific useful competencies, aimed at improving an individual's capability, capacity, productivity, and performance.

Occupational Safety

Practices and policies implemented to ensure the physical and psychological well-being of employees in the workplace.

Equal

Describes a state of being the same in quantity, size, degree, or value.

Equal

Pertaining to the concept of sameness or equivalence in value, quantity, or meaning.