If a hedge fund has a 2/20 fee structure and $15 million of assets under management, how much will its annual management fee be?
A)$300
B)$3,000
C)$30,000
D)$300,000
E)$3,000,000

Name: If a hedge fund has a 2/20 fee structure and $15 million of assets under management, how much will its annual management fee be? A)$300 B)$3,000 C)$30,000 D)$300,000 E)$3,000,000
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Question

Quizplus · Accepted Answer

The 2/20 fee structure means the hedge fund charges a 2% management fee on assets under management. Therefore, 2% of $15 million is $300,000.

If a Hedge Fund Has a 2/20 Fee Structure and $15