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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