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Basic Question 0 of 7

The fee structure of a hedge fund is "2 and 20." This means:

A. incentive fee from 2% to 20%, depending on the fund performance.
B. 2% management fee and 20% incentive fee.
C. 2% management fee if the profit margin is over 20%.

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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.