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Basic Question 3 of 15

An investor gives a hedge fund $500k in 2020 and that investment's value falls to $300k. In 2021 the hedge fund produces 100% returns and that investment is now worth $600k. This individual would have to pay performance fees based on the gain of ______ in 2021.

A. $100k.
B. $200k.
C. $300k.

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe investment ownership and compensation structures commonly used in alternative investments

CFA® 2024 Level I Curriculum, Volume 5, Module 1.