alleryStart learning →What does a high water mark ensure?
AFee after loss recovery
BFee on every gain
CNo management fee
DFree redemptions
Answer & Solution
Correct answer: A. Fee after loss recovery
A high water mark applies the performance fee only to net profits after earlier losses are recovered.
Keep practising Portfolio Management
Browse all Portfolio Management questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
What do venture capitalists usually obtain for taking high risk in early-stage firms?What is bridge financing in a startup?Which is a typical exit route for a venture capitalist?What is the first round of institutional venture capital to fund growth called?Venture capital is a form of which financing?What key benefit do Indian REITs give investors over direct property?In which year did India approve the creation of REITs?What tax benefit do most countries' laws give REITs?