A 2 Plus 20 Fee Structure for a Hedge Fund

question 84

Multiple Choice

A 2 plus 20 fee structure for a hedge fund means that the fund:

• A) takes 2% of any returns over 20%.
• B) charges 2% of AUM and takes 20 percent of profits.
• C) charges a 2% load and a 20% management fee.
• D) charges a 20% load and a 2% management fee.

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Definitions:

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against disease-causing organisms or substances.

Self-Efficacy Expectations

Our beliefs that we can bring about desired changes through our own efforts.

Biological

Pertaining to the science of life or living organisms, focusing on the physical and chemical processes that occur within living things.

Eustress

Stress that is healthful.