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Basic Question 12 of 15

Assume a "2 and 20" compensation structure with 8% hurdle rate without any catch-up clause. The partnership has earned a 12% profit. How much can the GP get?

A. 2.4%
B. 1.8%
C. 0.8%

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Craig Baugh

Craig Baugh

Learning Outcome Statements

describe investment ownership and compensation structures commonly used in alternative investments

CFA® 2025 Level I Curriculum, Volume 5, Module 1.