Hedge Fund Advisors Typically Receive a Management Fee, Often ________

question 37

Multiple Choice

Hedge fund advisors typically receive a management fee, often ________ of the fund asset value as compensation, plus performance fee that can be 20-25 percent of capital appreciation.

• A)1 to 2 percent
• B)10 to 20 basis points
• C)10 percent
• D)None of the above

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Definitions:

Fundamental Attribution Error

Refers to the tendency of individuals to overemphasize personality-based explanations for behaviors observed in others while underestimating the influence of situational factors.

Attribution Theory

A psychological theory focused on how individuals interpret events and how this relates to their thinking and behavior.

Pretentious

Characterized by an attempt to seem more important or knowledgeable than one actually is, often by affecting greater importance or merit.

Preformed Schemas

Cognitive structures or frameworks that help individuals organize and interpret information, often based on past experiences and societal norms.