It charged investors a performance

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ABC Hedge Fund, which specializes in global macro strategies, had a 5% rate return in a year in which the MSCI World Index returned 8%. Despite ABC's relative underperformance, it charged investors a performance (incentive) fee. Why? Its benchmark return is zero. Its standard deviation was lower than that of the index. Its Sharpe ratio was higher than that of the index

Reference no: EM133632621

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