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A Hedge Fund Has $150 Million in Assets at the Beginning

Question 1

Multiple Choice

A hedge fund has $150 million in assets at the beginning of the year and 10 million shares outstanding throughout the year.Throughout the year assets grow at 12%.The fund charges 3% management fee on assets.The fee is imposed on year end asset values.What is the end of year NAV for the fund?


A) $15.00
B) $15.60
C) $16.30
D) $17.55

Correct Answer:

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