Consider a Hedge Fund with $250 Million in Assets at the Start

question 31

Multiple Choice

Consider a hedge fund with $250 million in assets at the start of the year.If the gross return on assets is 18% and the total expense ratio is 2.5% of the year end value,what is the rate of return on the fund?

• A) 15.05%
• B) 15.50%
• C) 17.25%
• D) 18.00%

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Definitions:

π Bonds

Covalent bonds formed from the sideways overlap of p orbitals, allowing for electron density regions above and below the plane of the atoms.

Bond Dissociation Energies

The amount of energy needed to break a particular bond in a molecule into its constituent atoms in the gas phase.

Sigma Bonds

A bond formed by the direct overlap of atomic orbitals, leading to a covalent bond with electron density concentrated directly between the nuclei.

Pi Bonds

Covalent chemical bonds where two lobes of one involved electron orbital overlap two lobes of the other involved electron orbital, characteristically found in double and triple bonds.