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Assume the Risk-Free Interest Rate Is 10% and Is Equal

question 59

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Assume the risk-free interest rate is 10% and is equal to fund's benchmark, the portfolio net asset value is $100, and the fund's standard deviation is 20%. Also assume time horizon of 1 year.
-What is the exercise price on the incentive fee?


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A judicial decree that a person be punished by execution as retribution for committing a crime deemed worthy of capital punishment.

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A form of punishment where an individual is sentenced to spend the rest of their life in prison.

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The act of jailing individuals in numbers that are not equal or just relative to their demographics in the general population.

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