What Does a Hurdle Rate Specified by a Hedge Fund

question 82

Multiple Choice

What does a hurdle rate specified by a hedge fund indicate?

• A)The maximum number of investors possible in the fund that would allow it to avoid regulations.
• B)The minimum amount required to be invested in the fund.
• C)The net worth criterion for an individual to be deemed an "accredited investor."
• D)The highest net asset value that the fund has previously achieved, above which the manager receives a performance fee.
• E)The minimum annualized performance benchmark that must be realized before a performance fee can be assessed.

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Definitions:

Pitch Diameter

A critical dimension in thread measurement; it's the diameter of the imaginary cylinder where the thread depth equals half the pitch.

Pitch Diameter

The effective diameter of a screw thread, roughly midway between the major and minor diameters.

Diametral Pitch

A measure of tooth density in gear sets, representing the number of teeth per unit of pitch diameter.

Circular Pitch

In gear design, the distance measured along the pitch circle between corresponding points on adjacent teeth.