FIN 301 Study Guide - Quiz Guide: Hedge Fund, Interest, Ordinary Income
Document Summary
Hedge funds generally have a 2-20 fee structure. Hedge funds are good investments for the average investor. Hedge fund fees are much lower than mutual fund fees. Group 2 interest? interest, interest is earned on interest. interest. interest, interest is earned on both the original investment and the accumulated interest. not reinvested. With simple interest, interest is reinvested. there is no difference between the two methods. Hedge funds use advanced investment strategies and benefit from lax regulation. With compound interest, the assumption is that interest earned on the original investment is. With simple interest, interest is earned only on the original investment whereas with compound. Simple interest always leads to a higher ending investment value when compared to compound. With compound interest, interest is earned only on the original investment whereas with simple. With simple interest, the assumption is that interest earned on the original investment is not.