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:

Export Development Canada

A Canadian government agency that provides insurance and financial services, among others, to help Canadian exporters and investors expand their international business.

EDC

Often refers to Economic Development Corporations, which are organizations focused on promoting economic growth within a specific geographic area.

Swaps

Financial derivatives where two parties exchange financial instruments or cash flows.

Gilts

Government bonds issued by the United Kingdom, considered low-risk investments since they are backed by the British government.