Asked by Rehana Shammi on May 17, 2024
Verified
Assume that you have invested $500,000 to purchase shares in a hedge fund reporting $800 million in assets, $100 million in liabilities, and 70 million shares outstanding. Your initial lockout period is 3 years.
How many shares did you purchase?
A) 13,333
B) 25,000
C) 50,000
D) 66,000
Lockout Period
A timeframe during which employees are prohibited from making changes to their retirement or investment plans.
Shares Outstanding
The total number of a company's shares that are currently owned by shareholders, including those held by institutional investors and corporate officers.
- Identify the capital prerequisites for allocating funds into hedge funds, encompassing the standard range for initial investments.
Verified Answer
ET
= $10; 500,000 / 10 = 50,000
Learning Objectives
- Identify the capital prerequisites for allocating funds into hedge funds, encompassing the standard range for initial investments.
Related questions
A Typical Traditional Initial Investment in a Hedge Fund Generally ...
Hedge Funds Are Typically Set Up as ________ ...
______ Are Private Partnerships of a Small Number of Wealthy ...
Which of the Following Cannot Usually Be a Hedged Item ...
Under IFRS, a Hedging Relationship Qualifies for Special Hedge Accounting ...