SIE Exam Question 943: Answer and Explanation

Question: 943

A hedge fund is a __________ offered fund of securities for high-net worth investors. The hedge fund manager is generally paid a __________ fee.

• A. privately, flat
• B. privately, performance
• C. publicly, flat
• D. publicly, performance

Correct Answer: B

Explanation:

A hedge fund is a privately offered fund of securities for high-net worth investors. The hedge fund manager is generally paid a performance fee.