- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 1. Alternative Investment Features, Methods, and Structures
- Subject 3. Investment and Compensation Structures
CFA Practice Question
For private equity funds, the management fee is typically based on ______. A. committed capital
B. invested capital
C. assets under management (AUM)
Correct Answer: A
On the other hand, a hedge fund usually uses AUM as the basis for management fee.
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