Question

Question 6 1 pts The Corona Fund is a typical hedge fund which charges its Limited Partners (LPs) a 2% management fee and a 20% performance fee. After 1 year in operation, Corona Fund terminates and distributes $122MM to its LPs. Assuming the fund started with $100mm on day one, how much of a performance fee (in dollars) is the fund manager entitled to receive? $2mm $6mm $8mm Nothing Question 7 1 pts The collateral pool used to back bonds issued by a CLO is made up almost entirely of___ Residential Mortgages Commercial Mortgages Automobile Loans Corporate Loans Question 8 1 pts Volatility is most commonly represented by which metric? Median Variance Sortino Ratio Standard Deviation

Answer 1

Ans 6) total payment = 2% of $100 Million + 20% ($122 - $100 - $2)

= $6 Million

Correct answer is option 2nd.

Ans 7) CLO is made up of corporate loans.

Correct answer is option 4.

Ans 8) Volatility is measured by standard deviation.

Correct answer is option 4.