1．To avoid most SEC regulations, hedge funds organized in the United States typically operate within all of the following guidelines EXCEPT hedge: A) fund managers are prohibited from advertising or marketing the fund. B) funds may accept only “qualified” investors. C) fund investments by individuals are limited to a maximum of $500,000. D) funds may accept a maximum number of investors. The correct answer was C) Hedge funds organized under section 3(c) (7) of the Investment Company Act may not advertise, must limit the number of investors to 500, and may only accept “qualified” investors, as defined by the Act. Hedge funds investments are not subject to a maximum amount. 2．Hedge funds operating in the United States that abide by certain guidelines: A) may advertise to “accredited” investors. B) can utilize certain hedging strategies. C) gain exemption from most SEC regulations. D) avoid restrictions on making macroeconomic bets. The correct answer was C) Hedge funds may not engage in advertising of any kind. Hedge funds may or may not utilize hedging strategies. Hedge funds may make macroeconomic bets, but this is not because of their agreement to adhere to certain guidelines. The main reason for hedge funds to organize under section 3 (c) (1) is to gain exemption from most SEC regulations. 3．Managers of hedge funds are typically compensated by: A) a management fee, based on the net change in value of the assets during the year. B) an incentive fee, based upon some performance goal set at the beginning of the fiscal year. C) a base management fee, based on the value of assets under management, plus an incentive fee, based on profits. D) an incentive fee, paid only if performance exceeds a “high water mark”. The correct answer was C) Typical arrangements pay the manager a base fee, usually around 1% of assets, plus an incentive fee proportional to profits. | 
发表于 2008-4-4 14:03
|