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A High Water Mark Is a Limiting Factor of Hedge

Question 40

Multiple Choice

A high water mark is a limiting factor of hedge fund manager compensation.This means that managers can't charge incentive fees ________.


A) when a fund stays flat
B) when a fund falls and does not recover to its previous high value
C) when a fund falls by 10% or more
D) None of the above occurs. Managers can always charge incentive fee

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