- 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
Early stage investments in hedge funds are often rewarded with a reduction in management or performance fees. This fee structure is an example of: A. Founders' shares
B. Fees based on asset size
C. Either/or fees
Correct Answer: A
The fee structure can act as an incentive for investors to make faster investment commitments.
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