- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 2. Alternative Investment Performance and Returns
- Subject 2. Calculating Fees and Returns
CFA Practice Question
A common fee structure in the funds of funds market is:
B. 1 and 10.
C. 1 and 20.
A. 2 and 20.
B. 1 and 10.
C. 1 and 20.
Correct Answer: B
Note this is for the funds of funds market. In the hedge fund market "2 and 20" is more common.
User Contributed Comments 1
| User | Comment |
|---|---|
| ankurwa10 | I don't this is accurate. I can say that for almost all fund of funds I have seen a 1 and 20 structure (of course it also depends on the asset class that the fund of fund wants to acquire) but still this may not be the right answer. |