The Previous Value of a Portfolio That Must Be Reattained

question 49

Multiple Choice

The previous value of a portfolio that must be reattained before a hedge fund can charge incentive fees is known as a

• A) benchmark.
• B) water stain.
• C) water mark.
• D) high water mark.
• E) low water mark.

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Definitions:

Chance

A concept referring to the occurrence of events in the absence of any obvious intention or cause.

Organized System

A structured set of components or entities that are interrelated and work together towards a particular goal or set of objectives.

Assumptions

Beliefs or statements taken for granted without proof.

Phenomena

Observable events or occurrences that can be investigated scientifically to understand their underlying principles.