A Hedge Fund May Charge a Special Performance Fee That

question 28

Multiple Choice

A hedge fund may charge a special performance fee that commonly ranges from:

• A)10 to 15 percent of NAV.
• B)15 to 20 percent of the fund's profits.
• C)20 to 30 percent of NAV.
• D)20 to 40 percent of the market price.
• E)20 to 40 percent of the fund's profits.

---

Definitions:

Well-Prepared Negotiators

Individuals who have thoroughly researched, planned, and strategized for a negotiation, including understanding the other party's needs, strengths, and weaknesses.

Resistance Point

The least favorable point at which one will accept a deal during negotiations, beyond which they prefer no agreement.

Expected Outcome

The anticipated result or consequence of an action or situation, based on predictions or prior experience.

Value

The importance, worth, or usefulness of something.