1. A hedge fund with $1 billion of assets charges a mangement fee of 2% and an icentive fee of 20% of returns over a money market rate, which currently is 5%. For portfolio returns of 12%, calculate total fees as a percent of assets under management.
a) 7.00%; b) 3.40%; c) 12.00%; d) 20.00%
2. Which on of the following is a common term for the market consensus value of the required return on a stock?
a) Dividend payout ratio; b) Intrinsic value; c) Market capitalization ratio; d) plowback ratio
3. The constant-growth dividend discount model (DDM) can be used only when the __________?
a) growth rate is less than or equal to the required return; b) growth rate is greater than or equal to the required return; c) growth rate is less than the required return; d) growth rate is greater than the required return
1. A hedge fund with $1 billion of assets charges a mangement fee of 2% and an icentive fee of 20% of returns over a money market rate, which currently is 5%. For portfolio returns of 12%, calculate total fees as a percent of assets under management.
a) 7.00%; b) 3.40%; c) 12.00%; d) 20.00%
2. Which on of the following is a common term for the market consensus value of the required return on a stock?
a) Dividend payout ratio; b) Intrinsic value; c) Market capitalization ratio; d) plowback ratio
3. The constant-growth dividend discount model (DDM) can be used only when the __________?
a) growth rate is less than or equal to the required return; b) growth rate is greater than or equal to the required return; c) growth rate is less than the required return; d) growth rate is greater than the required return
