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

question 59

Multiple Choice

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?

• A) $100
• B) $105
• C) $110
• D) $115

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Definitions:

Material Breach

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Law Violation

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