CFA Level I sample question

CFA Level I Alternative Fee Calculation question

Alternative Investments / Alternative Fee Calculation

No-login practice

Alternative Fee Calculation sample question

Choose an answer before revealing the explanation, key takeaway, and answer-choice review.

Question 1 of 1Score 0/1

Moderate

Alternative Investments

Alternative Fee Calculation

A private fund begins the year with NAV of USD50 million and ends before fees at USD58 million. It charges a 1.5% management fee on beginning NAV and a 20% incentive fee on gains above a 7% hard hurdle, calculated after deducting the management fee. The net return is closest to:

Report an issue

Question of the Week

Get one CFA Level I question by email

Receive a weekly practice question with answer-choice explanations and a short takeaway.