Hedge Fund Managers Receive Incentive Bonuses When They Increase Portfolio

question 11

Multiple Choice

Hedge fund managers receive incentive bonuses when they increase portfolio assets beyond a stipulated benchmark but lose nothing when they fail to perform.This equivalent to __________.

• A) writing a call option
• B) receiving a free call option
• C) writing a put option
• D) receiving a free put option

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Definitions:

High-Pitched Sounds

Sounds that have a high frequency, typically perceived as sharp or squeaky, and are often more easily noticed or can be bothersome to the ear.

Handedness

Refers to the preference of using one hand over the other for performing activities, commonly categorized into right-handedness, left-handedness, and ambidexterity.

Preschool Years

A developmental period in early childhood, typically ranging from ages 3 to 5, characterized by growth in social, cognitive, and motor skills as children prepare for elementary education.

Dexterity

Skill and ease in using the hands or body; the coordination of fine or gross motor abilities.