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CFA Level I ending question

Alternative Investments / Fees and Returns

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Alternative Investments

Fees and Returns

A hedge fund begins the year with NAV of USD100 million. The high-water mark is USD112 million. The fund ends the year before fees at USD116 million. Management fee is 2% of beginning NAV, and incentive fee is 20% of gains above the high-water mark, calculated after the management fee is separately charged. The investor's net return is closest to:

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