Consider a Hedge Fund with $200 Million at the Start

question 44

Multiple Choice

Consider a hedge fund with $200 million at the start of the year. The benchmark S&P 500 index was up 16.5% during the same period. The gross return on assets is 21% and the expense ratio is 2%. For each 1% above the benchmark return the fund managers receive 0.1% incentive bonus.
-What was the management cost for the year?

• A) $4,877,000
• B) $4,900,000
• C) $5,929,000
• D) $6,446,000

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Definitions:

Vision For The Future

A strategic foresight or aspiration that frames an organization’s or individual's desired direction and objectives for the long-term.

Locus Of Control

Refers to the degree to which people believe they have control over the outcome of events in their lives, as opposed to external forces beyond their control.

Innovation

The method by which a concept or innovation is transformed into a product or service that generates value or that consumers are willing to purchase.

Product Development

The process of bringing a new product or service to the market, from ideation and design through to production and launch, involving research and testing to meet consumer needs.