Consider a Hedge Fund with $400 Million in Assets,60 Million

question 37

Multiple Choice

Consider a hedge fund with $400 million in assets,60 million in debt,and 16 million shares at the start of the year; and $500 million in assets,40 million in debt,and 20 million shares at the end of the year.During the year investors have received an income dividend of $0.75 per share.Assuming that the fund carries no debt,and that the total expense ratio is 2.75%,what is the rate of return on the fund?

• A) 6.45%
• B) 8.52%
• C) 8.95%
• D) 9.46%

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Definitions:

Deception

The act of misleading or deceiving others as a strategy, either through lying, presenting false information, or by concealing the truth.

Confederate

refers to a person, group, or nation united with others for a common purpose, often used in historical contexts such as the Confederate States of America during the American Civil War.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations in the independent variable.

High-Calorie Treat Food

Edible items that are often rich in sugars and fats, offering a significant amount of calories but usually lacking in nutritional value.