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LOS q: Explain the typical structure of a hedge fund, including the fee structure and the rationale for high water marks.
Q1. In the structure of a hedge fund, which of the following is least accurate concerning a lock-up period? A lock-up period:
A) establishes a minimum investment period for each investment.
B) establishes a cap on new investment.
C) establishes exit windows.
Q2. With respect to the operations of a hedge fund, a high water mark is designed to:
A) prevent a manager from being paid twice for the same gains of the fund.
B) prevent a manager from allowing the fund to become so large that it cannot be managed efficiently and/or use its selected style effectively.
C) put a cap on the assets-under-management fee.
Q3. Which of the following would be among the most common compensation of the manager of a hedge fund?
A) An assets-under-management fee of 20% and an incentive fee of 1.5% of the dollar return over the initial investment.
B) An assets-under-management fee of 1.5% and an incentive fee of 20% of the dollar return over the initial investment.
C) An assets-under-management fee of 1.5% and a lock-up fee of 20%. | 
发表于 2009-3-11 10:10
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