The API Fund Currently Has Assets Under Management of $450

question 45

Multiple Choice

The API Fund currently has assets under management of $450 million. If the company uses a 2/20 fee structure, what is the yearly management fee?

• A)$140,000
• B)$1,400,000
• C)$1,440,000
• D)$14,000,000
• E)$14,400,000

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Definitions:

Concentrated Acid

A solution that has a high proportion of acid to solvent, characterized by its strong chemical activity.

Hypnotized

The state of being under hypnosis, characterized by heightened focus, reduced peripheral awareness, and increased responsiveness to suggestions.

Nonhypnotized

Refers to a state of normal consciousness without being under hypnosis, where an individual is fully aware and not influenced by hypnotic suggestion.

Puzzlement

The state of being confused or perplexed.