Hedge Funds Charge Expense Fees and Performance Fees

question 38

Multiple Choice

Hedge funds charge expense fees and performance fees. The average performance fee on hedge funds is ____________.

• A) 5%
• B) 10%
• C) 15%
• D) 20%
• E) 25%

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Definitions:

Entity Theory

The belief that personal qualities such as intelligence and ability are fixed and cannot change significantly.

Intelligence

denotes the capacity for learning, understanding, and applying knowledge and skills and the ability to adapt to new situations.

Clayton Act

A piece of U.S. legislation enacted in 1914 aimed at promoting fair competition and preventing monopolies and unethical business practices.

Exclusive Dealing

A contractual arrangement in which a seller agrees to sell its products to only one particular buyer, or a buyer agrees to purchase from only one seller, limiting competition.