Hedge Fund Managers Receive Incentive Bonuses When They Increase Portfolio

question 31

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 is equivalent to ________.

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

Comprehend how industry characteristics affect organizational culture.

Analyze the role of leaders in shaping and conveying organizational culture.

Assess the long-term performance differences between adaptive and nonadaptive firms.

Understand the influence of organizational culture on employee performance and behavior.