- 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
Assume a "2 and 20" compensation structure with 8% hurdle rate and a catch-up clause. The partnership has earned a 20% profit. How much can the GP get? A. 2.4%
B. 4%
C. 6%
Correct Answer: B
The GP gets 20% x 0.2 = 4%.
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