Hedge fund advisors typically receive a management fee,often ________ of the fund asset value as compensation,plus performance fee that can be 20-25 percent of capital appreciation.

Question

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Hedge fund advisors typically receive a management fee, often around 1-2 percent of the fund asset value as compensation, plus a performance fee that can be 20-25 percent of capital appreciation. Option A is the only choice that accurately reflects this information. Option B (10 to 20 basis points) is too low, and option C (10 percent) is too high. Option D (none of the options) is not accurate, as option A is the closest to the correct answer.

Hedge Fund Advisors Typically Receive a Management Fee,often ________ of the Fund