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LOS i, (Part 1): Discuss the descriptive accuracy of the term "hedge fund," and define hedge fund in terms of objectives, legal structure, and fee structure.
Q1. To avoid most SEC regulations, hedge funds organized in the United States typically operate within all of the following guidelines EXCEPT hedge:
A) funds may accept a maximum number of investors.
B) fund managers are prohibited from advertising or marketing the fund.
C) fund investments by individuals are limited to a maximum of $500,000.
Q2. Managers of hedge funds are typically compensated by:
A) an incentive fee, paid only if performance exceeds a “high water mark”.
B) a base management fee, based on the value of assets under management, plus an incentive fee, based on profits.
C) a management fee, based on the net change in value of the assets during the year.
Q3. Hedge funds operating in the United States that abide by certain guidelines:
A) can utilize certain hedging strategies.
B) gain exemption from most SEC regulations.
C) may advertise to “accredited” investors.
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发表于 2009-2-28 17:35
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