A Private Equity Fund Has Established a 2/20 Fee Structure

question 6

Multiple Choice

A private equity fund has established a 2/20 fee structure. The fund currently has assets under management of $220 million. What is the yearly management fee for this fund?

• A)$440
• B)$4,400
• C)$44,000
• D)$440,000
• E)$4,400,000

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Definitions:

Dependent Variable

In an experimental setting, the variable that is being tested and measured, which is expected to change as a result of manipulations in the independent variable.

Independent Variable

In experimental and research settings, the variable that is manipulated or changed to observe its effects on the dependent variable.

Exercise

Physical activity that is planned, structured, repetitive, and aimed at improving or maintaining physical fitness and overall health.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effects on the dependent variable.