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LOS u: Review the process of identifying, selecting, and contracting with equity managers, including the development of a universe of suitable candidates based on both qualitative and quantitative factors, the composition of equity manager questionnaires, and the analysis of fee structures.
Q1. If an investor is concerned that his or her equity manager might undertake too much risk, which of the following provisions in the equity manager’s compensation plan should be included?
A) Stock options.
B) A fee cap.
C) A high water mark provision.
Q2. Which of the following equity manager compensation plans would create the greatest incentive for performance?
A) A symmetric compensation plan.
B) A base compensation plus bonus and stock options.
C) A base compensation plus stock options.
Q3. Which of the following provisions in an equity manager’s compensation plan would create symmetry in the compensation?
A) A high water mark provision.
B) A fee cap.
C) Stock options. | 
发表于 2009-3-9 09:41
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