CFA Level I sample question

CFA Level I 2. Alternative Investment Performance and Returns question

Alternative Investments / 2. Alternative Investment Performance and Returns

No-login practice

2. Alternative Investment Performance and Returns sample question

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

Question 1 of 1Score 0/1

Very Difficult

Alternative Investments

2. Alternative Investment Performance and Returns

A hedge fund begins the year at USD200 million and ends the year at USD232 million before fees. The high-water mark is USD215 million. The fund charges a 1% management fee on ending gross value and a 20% incentive fee. The hurdle rate is 5%, and incentive fees and hurdle considerations are determined after management fees. The investor 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.