CFA Level I sample question

CFA Level I 1. Alternative Investment Features, Methods, and Structures question

Alternative Investments / 1. Alternative Investment Features, Methods, and Structures

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1. Alternative Investment Features, Methods, and Structures sample question

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Alternative Investments

1. Alternative Investment Features, Methods, and Structures

A fund-of-funds invests USD100 million in underlying hedge funds. The underlying funds report an 8.0% net return to the fund-of-funds before fund-of-funds fees. The fund-of-funds charges a 1.0% management fee on beginning assets and a 10% incentive fee on gains remaining after its management fee. The net return to the end investor is closest to:

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