A High Water Mark Is a Limiting Factor of Hedge

question 21

Multiple Choice

A high water mark is a limiting factor of hedge fund manager compensation. This means that managers cannot charge incentive fees ________.

• A)when a fund stays flat
• B)when a fund falls and does not recover to its previous high value
• C)when a fund falls by 10% or more
• D)None of the above occurs. Managers can always charge incentive fees.

---

Definitions:

Basic Geometric Shapes

Simple forms such as circles, squares, triangles, and rectangles that are a foundational element of geometry.

Artistic Development

The process and stages of growth in creating, understanding, and appreciating art.

Motor and Cognitive Skills

Skills related to physical movement and mental processes respectively. Motor skills include tasks like walking, while cognitive skills involve tasks like thinking and problem-solving.

Social and Sensory Skills

These skills involve the ability to interact effectively with others and to process and respond to sensory input from the environment.